Research On The Motivation And Economic Consequences Of Diversification Of Barrage Video Companies

Faced with the unpredictability of the current economy and the drastic changes in the external environment,diversified operations have become a strategic choice for many companies to expand market shares and reduce operating risks.In recent years,our country's online video industry has experienced fierce competition.Faced with a slowdown in advertising revenue growth and a market environment with uncertain audience preferences,online video companies urgently need to establish their own competitive advantages.Among them,barrage video companies have single characteristics and are easy to be replaced.It is most urgent to find new opportunities.With the rapid development of network information technology,the scale of China's e-sports market has continued to expand,forming a complete e-sports industry chain.Live broadcast platforms and short video platforms have entered the e-sports market one after another to divide market shares.The current research on diversification mainly focuses on the manufacturing industry.There are both successful explorers and failed imitators.So,what are the reasons why barrage video companies choose to enter the e-sports industry? What are the economic consequences?This article selects the barrage video company Bilibili(hereinafter referred to as station B)to enter the e-sports industry as a case study,explores the motivations of station B's involvement in e-sports,and uses event research method,financial indicator analysis method and factor analysis method analyze the economic consequences of station B's involvement in e-sports from multiple aspects of long-term and short-term market performance,financial performance,and non-financial performance.Research shows that the main reason for Station B's entry into the e-sports industry is due to fierce internal competition in the online video industry.The existing business is facing profitability bottlenecks,the business structure is unstable,and the cost burden is heavier.It needs to find new profit points,and the e-sports industry has a good development prospect,it is conducive to consolidating the structure of the cultural and entertainment industry at Station B.Station B's involvement in e-sports and the establishment of an e-sports company had positive excess returns in the long-term and short-term market performance,and non-financial performance is good.However,in terms of financial performance,the dispersion of funds reduces operating capacity,high costs and expenses reduce profitability,debt solvency is good,growth ability is stable,and comprehensive financial performance scores are on a downward trend.It is necessary to further stabilize the profit structure and consolidate independent research and development capabilities.