This article is transferred from the official account "Research Notes of Yang Renwen" on Wechat, by Chen Mengzhu.

Core viewpoints

Events:

Recently, Tencent (00700) Wechat iOS has updated the joint broadcasting, beauty, reward, lottery and other new functions of the video account. At the same time, two private domain entries for the video number are opened: the discovery page "Live and people nearby" and the video number business card displayed on the personal page.

Comments:

1. The feature update of the video number focuses on enhancing the interactive, interesting and cash-out ability of the live video number.

The LVB joint broadcasting feature involved in this update is a common feature of LVB products, which can be applied to joint broadcasting between VJs and between VJs and fans. Real-time interaction will greatly enhance the stickiness of LVB users and improve the playability of video numbers. Functions such as beauty filters meet the needs of VJs to show themselves, and also help to attract users to watch and reward. The introduction of WeChat beans (the recharge ratio of 1 CNY on iOS equals 7 WeChat beans) and the introduction of LVB reward system encourage more VJs to carry out live broadcasting, providing a new realization channel for creators. The lottery feature in the live room can attract users to watch, enliven the atmosphere of live broadcasting, and provide a new idea for offline merchants.

2. Add two heavyweight private domain portals to continue to take advantage of social advantages to accelerate video number drainage.

On the basis of "video number liked by friends" and "live broadcast watched by friends", this update Wechat opens up two advantageous traffic resources, "nearby LVB and people" and "user profile Video number display", to conduct strong private domain diversion of video numbers, reflecting that Wechat is accelerating the use of social advantages to guide users to form video number usage habits. We believe that embedded in national-level social products, video number has opened up a public domain traffic channel for Wechat, the development path from the private domain to the public domain, combined with decentralization + centralization, which greatly makes up for the deficiency of Wechat in traffic acquisition.

3. At present, the content of music, emotion and life of video number accounts for a relatively high proportion, and other types of content are constantly expanding. The improvement of video number experience and realization function may create new traffic dividends for high-quality content providers.

According to Aladdin's statistics, TOP500 released a total of 24500 works in November 2020, with 196 million likes and 6.63 million comments. Among them, music, emotion and live videos account for the highest proportion, reaching 18.0%, 15.4% and 14.0% respectively, accounting for nearly half of the total. In terms of interaction, games are significantly higher, with 19.4% of comments / likes, followed by fashion art, cars, enterprises, science popularization, animation and so on. On the whole, the content richness of video number still needs to be improved, and the content of various vertical areas is constantly expanding. The improvement of video number experience and realization function may create new traffic dividends for high-quality content providers.

4. The video number quickly completes the short video + LVB infrastructure function in a short time, which is the self-expansion of Wechat's ecological ability under the general trend of video in the content industry.

Within a year since the video account started its internal test in January, it has successively completed a number of short video and live streaming functions, opened up Wechat capabilities such as Wechat Shop, moments, and Mini Program, connected to commercial infrastructure, and made rapid iterations and great advances in products. Under the general trend of video in the content industry, Wechat's continuous addition of video number is a self-expansion of its ecological ability. we believe that Wechat Video account will be linked with Mini Program and WeChat Pay to realize the closed loop of Wechat internal traffic. open up a new growth curve for Wechat advertising, financial payment and other business.

Risk hints: macroeconomic growth is less than expected risk, industry market competition intensifies risk, policy content supervision risk, user loss risk, Internet valuation adjustment risk, realization less than expected risk and so on.

Report body

Events:

Recently, the new version of Wechat iOS has updated the video number's new functions such as joint broadcasting, beauty, reward, lottery and so on. At the same time, two private domain entries for the video number are opened: the discovery page "Live and people nearby" and the video number business card displayed on the personal page.

Viewpoint:

1. The feature update of the video number focuses on enhancing the interactive, interesting and cash-out ability of the live video number.

The LVB joint broadcasting feature involved in this update is a common feature of LVB products, which can be applied to joint broadcasting between VJs and between VJs and fans. Real-time interaction will greatly enhance the stickiness of LVB users and improve the playability of video numbers. Functions such as beauty filters meet the needs of VJs to show themselves, and also help to attract users to watch and reward. The introduction of WeChat beans (the recharge ratio of 1 CNY on iOS equals 7 WeChat beans) and the introduction of LVB reward system encourage more VJs to carry out live broadcasting, providing a new realization channel for creators. The lottery feature in the live room can attract users to watch, enliven the atmosphere of live broadcasting, and provide a new idea for offline merchants.

2. Add two heavyweight private domain portals to continue to take advantage of social advantages to accelerate video number drainage.

On the basis of "video number liked by friends" and "live broadcast watched by friends", this update Wechat opens up two advantageous traffic resources, "nearby LVB and people" and "user profile Video number display", to conduct strong private domain diversion of video numbers, reflecting that Wechat is accelerating the use of social advantages to guide users to form video number usage habits. We believe that embedded in national-level social products, video number has opened up a public domain traffic channel for Wechat, the development path from the private domain to the public domain, combined with decentralization + centralization, which greatly makes up for the deficiency of Wechat in traffic acquisition.

3. At present, the content of music, emotion and life of video number accounts for a relatively high proportion, and other types of content are constantly expanding. The improvement of video number experience and realization function may create new traffic dividends for high-quality content providers.

According to Aladdin's statistics, TOP500 released a total of 24500 works in November 2020, with 196 million likes and 6.63 million comments. Among them, music, emotion and live videos account for the highest proportion, reaching 18.0%, 15.4% and 14.0% respectively, accounting for nearly half of the total. In terms of interaction, games are significantly higher, with 19.4% of comments / likes, followed by fashion art, cars, enterprises, science popularization, animation and so on. On the whole, the content richness of video number still needs to be improved, and the content of various vertical areas is constantly expanding. The improvement of video number experience and realization function may create new traffic dividends for high-quality content providers.

4. The video number quickly completes the short video + LVB infrastructure function in a short time, which is the self-expansion of Wechat's ecological ability under the general trend of video in the content industry.

Within a year since the video account started its internal test in January, it has successively completed a number of short video and live streaming functions, opened up Wechat capabilities such as Wechat Shop, moments, and Mini Program, connected to commercial infrastructure, and made rapid iterations and great advances in products. Under the general trend of video in the content industry, Wechat's continuous addition of video number is a self-expansion of its ecological ability. we believe that Wechat Video account will be linked with Mini Program and WeChat Pay to realize the closed loop of Wechat internal traffic. open up a new growth curve for Wechat advertising, financial payment and other business.

5. Risk hints: macroeconomic growth falls short of expectations, industry market competition intensifies risk, policy content supervision risk, user loss risk, Internet valuation adjustment risk, realization less than expected risk, and so on.