Revenue Declines Year by Year, Mother Company of The Voice of China Reads the Experience of the Metaverse

Revenue of The Voice of China's mother company declines year by year, reading the Metaverse's experience.

Half a year after its listing, the stock price of the leading entertainment production company Starry Sky China has shown a sharp trend in the Hong Kong stock market.

As of the close on July 24th, Starry Sky China closed at HKD 117 per share, a cumulative increase of 341.51% compared to its issue price of HKD 26.5 per share on December 29, 2022.

However, as the revenue contribution and gross profit of “The Voice of China” continue to decline year by year, Starry Sky China has recently attempted to jump on the metaverse bandwagon by creating the first metaverse application for “The Voice of China” called Sing! Meta Yao Yin.

Industry insiders have analyzed that Starry Sky China’s metaverse layout is an active attempt, bringing a new experience to viewers and fans of the show. However, there are prominent issues with the immaturity of metaverse technology elements, poor user experience, low user stickiness, and the need for long-term market validation of the business model.

Metaverse version of “The Voice of China” to be launched within the year

On July 14th, Starry Sky China announced the launch of Sing! Meta Yao Yin, the first application developed in collaboration with Shanghai Ona Technology (Nfkings).

This product is the metaverse version (also known as the metaverse version of “The Voice of China”) of the famous variety show “The Voice of China” under Starry Sky China, and is expected to be launched within the year.

It is reported that the metaverse version of “The Voice of China” is rooted in the IP content and existing fan base of “The Voice of China” and combines Web3 games, aiming to fully unleash the development potential of this well-known hit show’s IP in the metaverse and AIGC fields.

There is no mention of further details about Sing! Meta Yao Yin in Starry Sky China’s announcement. The Metaverse NEWS reporter has sent an interview request to Starry Sky China but has not received a response as of the time of writing.

The official website of Shanghai Ona Technology (Nfkings) only provides brief introductions about itself. For example, investors include BINANCE LABS, Vertex, Ventech, Pao Pao Mart, and Team Wang.

The metaverse version of “The Voice of China” is a unique space for users to showcase themselves and realize their dreams, as well as a social platform that brings endless fun and surprises to users. The platform will provide users with immersive recording functions for singing works, allowing users to upload their favorite works for the audience to enjoy. This is how Sing! Meta Yao Yin is described on its official website.

To angel investor and senior AI expert Guo Tao, Sing! Meta Yao Yin breaks the barrier of the screen, allowing virtual and reality to merge organically. Participants can immerse themselves in virtual stage scenes for music creation and singing performances, as well as engage in new interactions with contestants.

In this virtual world, everyone can become a creator and disseminator of music. This open approach to creation and dissemination will drive the transformation of the entertainment industry and involve more people in music creation and dissemination, Guo Tao said.

The metaverse, as an emerging concept, is gradually attracting attention from various industries. Combining the popular music program “The Voice of China” with the metaverse is undoubtedly a bold attempt. Wu Gaobin, an expert from the Whales platform think tank and the Secretary-General of the Metaverse Working Committee of the China Federation of Literary and Art Circles, told reporters that this not only brings new development opportunities to “The Voice of China,” but also provides a brand new way of experiencing for the audience and fans of the program. Through metaverse technology, participants can interact with contestants and participate in program voting in a virtual world, enhancing the sense of participation and entertainment experience.

Can the Metaverse Bring New Opportunities to “The Voice of China”?

Star Chinese, formerly known as Canxing Culture, gained fame in the industry and brought in large orders and substantial revenue for the company when the music variety show “The Voice of China” became popular in 2012.

Data shows that Star Chinese’s main business consists of four major components: variety show programs, music, film and drama IP operation, and other IP-related businesses.

However, the main source of revenue for the company is the production, operation, and licensing of variety show program IPs, which accounted for about 80% of the total revenue in 2022.

Among the popular variety show program IPs, “The Voice of China” and “Street Dance of China” were both produced by Star Chinese. Among them, “The Voice of China” is the biggest source of variety show revenue for Star Chinese.

According to the prospectus, Star Chinese’s revenue for 2019-2021 was 1.807 billion yuan, 1.56 billion yuan, and 1.127 billion yuan, respectively, showing an accelerated decline. During the same period, net profit was 382 million yuan, -27.8 million yuan, and -352 million yuan, with losses expanding continuously.

For 2019-2021, “The Voice of China” contributed revenue of 491 million yuan, 325 million yuan, and 252 million yuan, accounting for 36.6%, 29.8%, and 28.6% of the total revenue, respectively. It can be seen that the revenue of the program has been declining with the decrease in its popularity.

The gross profit margin of “The Voice of China” has also declined at an alarming rate, from 46.6% in 2019 to only 2.2% in 2021.

In response, Star Chinese stated that this was mainly due to the impact of the epidemic, the reduction in advertising investment by companies, and the decrease in licensing income from online media platforms.

Star Chinese announced that it has signed a memorandum of understanding with Shanghai NFkings Technology (NFkings). The two parties plan to establish a Web3 entertainment joint venture company called Hong Kong Yaoxing, aiming to introduce social attributes of the digital economy into traditional variety show entertainment content. They will hold 55% and 45% of the shares, respectively.

Clearly, the metaverse of “The Voice of China” is an attempt by Star Chinese to enter the virtual asset market.

Wu Gaobin told reporters that the metaverse, as an emerging technology, is still in its early stages of development, and there are still many technical challenges. For example, the maturity of virtual reality technology and the improvement of user experience both require time and effort; secondly, there are security and privacy issues. In the metaverse, users’ personal information and interactive behavior need to be effectively protected to prevent data leakage and abuse; in addition, a sound legal and regulatory framework needs to be established to ensure the healthy development of the metaverse.

In Guo Tao’s view, the current metaverse products are still in the conceptual stage, with generally rough design, immature technical elements, poor user experience, and low user stickiness. The business models also require long-term validation in the market. It is expected that the trial-and-error stage will be quite long.

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