Blue Whale News, September 12 (Reporter Chi Lei) Recently, Gaotu's Douyin live broadcast room “Gaotu Jiapin” issued an announcement to various fan groups, stating that the Gautu Jiapin live broadcast room will be temporarily suspended, and that the broadcast time is yet to be determined. “This brief suspension is to better enhance our live streaming content and service positioning, and bring everyone a new experience and higher quality content.”

Currently, Gaotu Jiapin has emptied all products in the Douyin live broadcast room and WeChat Mini Program store window. It can be said that at the end of last year, the “Little Essay Crisis” selected by Dongfang “drained” a wave of traffic to the Gaotu live streaming business. After all, Gaotu still failed to seize this fleeting opportunity.

Since April of this year, the core anchor of Gaotu Jiapin has either left his job or regained his status as a teacher. According to Times Financial Report, the anchor of Gaotu Jiapin once responded to questions about the suspension of “Gaotu Jiapin” during the live broadcast, saying, “We have not gone out of business; 'Gaotu Jiapin' has indeed stopped broadcasting. In the future, it will assume the group's brand promotion function, and the work of live streaming will move to 'Gaotu Jiapin grows and happy. '” According to Meat's explanation, the new account will incorporate education-related products, such as English courses and learning products. It is a live streaming shopping platform with education as the main line.

At the same time, however, the main education business of Higher Education is unsatisfactory. At the end of August, Gaotu released its 2024 Q2 financial report. According to financial reports, as of June 30, 204, Gaotu achieved revenue of 1.01 billion yuan in Q2 of 2024, an increase of 43.6% over the previous year; realized a net loss of 0.43 billion yuan, compared with net profit of 56.2 million yuan for the same period in 2023. As of June 30, 2024, it held a total of $4.103 billion in cash and cash equivalents, restricted funds, short-term investments and long-term investments.

In fact, up to now, there are few live streaming studios owned by education companies that have gone through the growth path of live streaming, with the exception of Oriental Selection, which is riddled with public opinion. Gaotu Jiapin, a subsidiary of Gaotu, and Xuersi Premium, a subsidiary of Learning & Si, were weak; although Doushen Education's live streaming business was highly anticipated by the company's management and developed relatively rapidly, it was also difficult to make up for the losses disclosed in the Group's financial reports. But at the same time, we can also see that recently two companies, China Public Education and Chalk Education, have made new choices to enter this circuit, which can already be called the Red Sea.

Although the partnership between education companies and the live streaming delivery business began by serendipity, I have to admit that today, the live streaming delivery business has become a shortcut for various companies to seek new growth, and education companies are no exception. However, judging from the current operating conditions of live streaming studios owned by various companies, the degree of compatibility between education companies and the live streaming delivery business is probably not very high, so where to go next will be a serious issue that the majority of education company management needs to carefully consider.