Core Viewpoint - The article discusses the valuation and challenges faced by Ximalaya, China's largest online audio platform, particularly in light of its acquisition by Tencent Music at a significantly reduced price, raising questions about its worth and sustainability in the competitive landscape of online audio and music [4][38]. Group 1: Valuation and Market Position - Ximalaya was sold to Tencent Music for 20.9 billion, which is one-third less than its last financing round valuation of 30 billion [4]. - Despite having a monthly active user base nearing 300 million, Ximalaya's financial struggles are evident, with over 3 billion in losses over five years and multiple failed IPO attempts [4][20]. - The valuation of Ximalaya is compared to other platforms, indicating it is worth approximately seven times Zhihu, eight times Keep, and eleven times Douyu [4]. Group 2: Importance of Copyright - Copyright is identified as the most valuable asset for online audio platforms, with Ximalaya's strategic partnerships and acquisitions in this area being crucial for its market position [5][11]. - Ximalaya has established significant copyright agreements, holding 70% of the market for audiobooks and exclusive content partnerships since 2014 [8][9]. - The platform's revenue structure heavily relies on subscription income, which constitutes over half of its total revenue, primarily driven by its extensive copyright library [10]. Group 3: Financial Performance and Challenges - Ximalaya's subscription revenue growth has drastically slowed from 57.1% in 2021 to 8.5% in 2023, indicating a decline in user willingness to pay [24]. - The average monthly active users include a significant number from third-party platforms, which may not contribute to revenue, highlighting the limitations of monetization in the audio sector [22]. - The platform's operational costs are heavily influenced by revenue sharing and content costs, which together account for over 30% of its income [20]. Group 4: Industry Comparisons - In contrast to Ximalaya, Tencent Music has a more robust subscription model with a higher payment rate, indicating a more mature commercial structure in the online music sector [32][36]. - The online audio market lacks the broad audience and established commercial mechanisms that the online music industry possesses, making it difficult for platforms like Ximalaya to achieve similar financial success [37]. - The article suggests that the online audio industry's ceiling for user engagement and monetization is lower than anticipated, leading to Ximalaya's ongoing financial difficulties [21][22].

Core Viewpoint - The article discusses the valuation and challenges faced by Ximalaya, China's largest online audio platform, particularly in light of its acquisition by Tencent Music at a significantly reduced price, raising questions about its worth and the impact of copyright on its business model [4][18][46]. Group 1: Valuation and Market Position - Ximalaya was sold to Tencent Music for 209 billion, which is a one-third reduction from its last financing round valuation of 300 billion [4][18]. - Despite having a monthly active user base comparable to Xiaohongshu, Ximalaya's valuation is significantly lower than other platforms like Zhihu and Douyu, indicating a market perception of its worth [4][18]. - The platform has faced four unsuccessful attempts to go public and has incurred losses exceeding 3 billion over five years, which contributed to its discounted sale price [4][18]. Group 2: Importance of Copyright - Copyright is identified as the most valuable asset for online audio platforms, with Ximalaya's success heavily reliant on its exclusive content, particularly from popular figures like Guo Degang [5][11]. - Ximalaya has strategically secured a significant portion of the market's audio book rights, holding 70% of the available adaptations through partnerships with major content providers [8][9]. - The platform's content library includes over 5.2 million audio books and 1.6 million pieces of entertainment audio, showcasing its extensive copyright portfolio [10]. Group 3: Financial Performance and Challenges - Ximalaya's subscription revenue has been the primary income source, contributing over half of its total revenue, but the growth rate has declined from 57.1% in 2021 to 8.5% in 2023 [21][27]. - The platform's average monthly active users reached 300 million in 2023, but the willingness to pay among users remains low, with a payment rate of only 11.6% [18][24]. - High operational costs, particularly in content acquisition and revenue sharing, have strained profitability, leading to significant layoffs and cost-cutting measures [19][21][22]. Group 4: Industry Comparison - In contrast to Ximalaya, competitors like Litchi FM have struggled with monetization, highlighting the importance of having strong copyright assets to drive revenue [14][15]. - The online audio market lacks the broad audience and mature business models seen in the online music sector, which has higher user engagement and monetization potential [44][36]. - The article suggests that the online audio industry's ceiling for user engagement and revenue generation is lower than anticipated, limiting growth opportunities for platforms like Ximalaya [25][44].

Core Viewpoint - The article discusses the valuation of Ximalaya, questioning whether it is worth 20.9 billion yuan after its acquisition by Tencent Music, highlighting a significant drop from its previous valuation of 30 billion yuan during the last funding round [1][2]. Group 1: Valuation and Market Comparison - Ximalaya's valuation of 20.9 billion yuan is comparable to seven times that of Zhihu, eight times that of Keep, and eleven times that of Douyu, indicating a substantial reduction in perceived value [2]. - The company has faced four unsuccessful attempts to go public and has incurred losses exceeding 3 billion yuan over five years, making the discounted sale seem reasonable [2]. Group 2: Importance of Copyright - The article emphasizes that copyright is the most valuable asset for online audio platforms, similar to how Tencent Music cannot afford to lose Jay Chou, Ximalaya cannot afford to lose Guo Degang [5][3]. - Ximalaya has strategically invested in copyright since 2014, partnering with Guo Degang's company, and has secured 70% of the market's audio book adaptation rights through agreements with major copyright holders [9][11]. Group 3: Revenue Structure and Challenges - Ximalaya's revenue structure shows that subscription income contributes over half of its total revenue, with a significant reliance on audio books and traditional storytelling formats [12][13]. - Despite having a large user base, the platform struggles with monetization, as evidenced by a decline in subscription revenue growth from 57.1% in 2021 to 8.5% in 2023 [35]. Group 4: User Engagement and Market Limitations - Ximalaya's average monthly active users reached 300 million, but the user engagement metrics indicate a potential ceiling, with average listening time declining from 144 minutes in 2021 to 130 minutes in 2023 [22][30]. - The platform's user base includes a significant number of IoT and third-party platform users, which limits the monetization potential compared to video platforms [31]. Group 5: Competitive Landscape - The article compares Ximalaya's situation to that of its competitors, noting that platforms like Lizhi, which rely on user-generated content, have lower monetization rates, highlighting Ximalaya's relatively better performance [17][19]. - The online audio market faces challenges due to a lack of a broad audience and a mature commercial mechanism, making it difficult to balance high copyright costs with revenue generation [58]. Group 6: Acquisition Context - Tencent Music's acquisition of Ximalaya reflects a strategic move to consolidate its position in the online audio market, especially after struggling with its own platform, Penguin FM [62][64]. - The acquisition gives Tencent Music control over a significant portion of the online audio market, with Ximalaya holding a market share of 45.52% [64].