Yiqun Chen's questions to DouYu International Holdings (DOYU) leadership • Q4 2024
Question
Yiqun Chen from BOCI Research, also known as Raphael Chen, questioned the expected user and financial impacts of the strategic adjustments to tournament procurement and streamer contracts.
Answer
Co-CEO Simin Ren provided a detailed breakdown. For copyrighted content, she stated the company will forego some high-cost, low-ROI tournaments in 2025, which will significantly decrease copyright costs but may temporarily affect traffic. For streamer content, she explained that fine-tuning resources and using flexible contracts will reduce compensation costs and pressure on gross margin, acknowledging this will also likely cause a short-term decline in traffic and livestreaming revenue. Overall, she expects a significant year-over-year decrease in content costs and a notable improvement in gross margin for 2025.