TVB has surged more than 50%! "Miss Hong Kong" live broadcast GMV exceeded 100 million!
TVB is reigniting its vitality, what are its advantages? It is a scarce target in the Hong Kong stock market! Securities firms predict that TVB's GMV on Taobao Live will reach 600 million yuan in one year, with revenue of about 42 million yuan; by 2025, it is expected that TVB's revenue from live streaming sales and advertising on Taobao Live and Douyin platforms will exceed 500 million yuan.
"Hong Kong drama-style live broadcast", the trend is rising again!
On Friday, June 2nd, TVB's parent company, TVB, rose again during trading hours, rising more than 50% at one point, and now the increase has narrowed to around 43%, with the stock price below HKD 7.
Similar to the surge in March, TVB's rise today is still related to live streaming sales!
Official news shows that on May 31st, TVB ShiHuo conducted its ninth live streaming sales event on Taobao, with the theme of "Hong Kong Miss". They invited Lai Lok-yi, Chen Ziyao, Tang Luowen, Gao Haining, Zhu Chenli, and He Yiting to participate in the e-commerce sales.
The above event lasted for 9 hours, from 5 pm to 2 am, with uninterrupted live streaming sales. The final total sales exceeded RMB 100 million (approximately HKD 110 million), and the cumulative number of viewers was nearly 10 million.
During the JD.com 618 e-commerce shopping festival, TVB's live streaming sales achieved excellent results, and the market reignited hope.
Compared with mainland live streaming e-commerce such as Oriental Selection, what advantages does TVB have?
Haitong Securities previously pointed out in a research report that TVB is a scarce target and has opened up new opportunities after cooperating with Taobao:
Content production: At the end of 2022, the population of mainland China was 1.4 billion, with 200 million cable TV users and an average monthly active OTT market of over 270 million, providing a broad market space compared to Hong Kong. TVB is currently the only Hong Kong TV station that has obtained landing rights in the mainland and has signed a content framework agreement with Youku for a total of RMB 700 million for two years, providing convenience for TVB to further expand its business cooperation in the mainland. With the relaxation of epidemic control, content production has resumed, and TVB is expected to further expand its cooperation space in the mainland film and television industry with its excellent content production capabilities.
E-commerce: TVB's first two collaborations with Taobao have achieved good results, fully demonstrating the possibility of IP+ live streaming sales. Moreover, TVB has scarcity in terms of content, fans, and product selection, which is difficult to replicate in the mainland; TVB has a rich reserve of high-quality stars and IP resources, and its performance can be expected if it expands its live streaming platform, following the example of Oriental Selection and others;
Advertising: There are many viewers of mainland and Hong Kong dramas, and after deepening cooperation in the mainland, advertisers from both places are expected to increase their advertising investment in TVB series and variety shows. TVB's accounts on short video platforms such as ByteDance and Kuaishou can also form a marketing closed loop through "star + IP seeding + conversion", attracting more advertisers. In addition, TVB's current shareholder structure and board of directors composition will provide assistance for its expansion in the mainland. According to Haitong International's prediction, by 2023, TVB will broadcast on Taobao Live once a week for a total of 48 times, with an average GMV of 130 million RMB per session and a commission rate of 7%. It is expected that the annual GMV will reach 600 million RMB, with revenue of about 42 million RMB.
Starting from 2024, TVB will broadcast 4 times a week, and with the maturity of marketing strategies and the expansion of product supply, the average GMV per live session has increased by 15%, and the commission rate has increased to 12%-15%.
By 2025, it is expected that TVB's revenue from Taobao Live and ByteDance platform's live streaming sales and advertising business will exceed 500 million RMB. If the company is willing to increase the number of sessions and allocate more resources to further develop ByteDance's live streaming sales and advertising business, the revenue growth rate will be even faster.