Risk Management for Bilibili(2019) – Overview

This is actually a study topic in my master’s period. The relevant course is about business risk management, mainly by learning methods, frameworks of risk management and practise on real business projects or companies. Secondly, Bilibili, as an Internet platform that I have been using all the year-round and one of the ideal employment companies for me in the future, has become my research object in this practice. So I would like to introduce and review the contents of this meaningful practice (All reference resources used are before 2019, the ‘current’ mentioned below refers to the beginning of 2019, and the ‘future ‘refers to the second half of 2019 and beyond).


Bilibili is the first iconic online entertainment brand for young people in the People’s Republic of China. The company has been providing a content community based on animation and professional user-generated (PUG) video since 2009 and went public in the US in 2018. Bilibili points out that their strategies are to improve the content offerings and user experience on the platform and to enhance technologies and other relevant capabilities. According to Bilibili’s only one clear mission which is to enrich the daily life of Chinese young people, their target market is the online entertainment industry and the user positioning aims for Generation Z, which refers to individuals born from 1990 to 2009 in China. iResearch shows that China’s online entertainment industry market arrived at RMB205.8 billion as of the end of 2016 and kept a growing trend. CNNIC presents the result that the number of Internet users who were aged 10-39 in China accounted for 75.0% of the total number of Chinese netizens by December 2017, which reached 579 million. Moreover, the market share contribution to the online entertainment industry of the major part of them who were born between 1990 and 2009 is expected to increase from 45.8% in 2014 to 54.8% in 2017. iQIYI is a leading online entertainment platform, operating the largest TV video streaming service in China. Alexa has revealed the result that the traffic rank of the iQIYI website is 30 in China, which is the closest rank to Bilibili website (17) as the online entertainment platform. Hence, iQIYI is one of the main competitors of Bilibili in the Chinese market.

Bilibili Inc. has been operating its main product which is an online entertainment website ‘Bilibili.com’. It mainly targets young users, with ACG(Anime, Comic, Game) as the main content in the early stage. After more than a decade of development, content themes now cover many areas, including music, movies, science and technologies, lifestyle, games, and more. Bilibili also offers live streaming services in the form of streamers. Typically the topic is anime, daily life, game strategy, etc. It is a remarkable fact that most of the content is created and uploaded by users independently, which guarantees the diversity and creativity of the content. Apart from hosting content, the core feature of Bilibili is a subtitle comment system which displays user comments as streams of moving subtitles on a video playback monitor which are visually similar to a shooter game by ‘Danmu’. That is the name of these subtitles in Chinese. These subtitles are simultaneously transmitted in real-time to all viewers and create an experiential chat room in which users want to watch and play together. This highly interactive viewing experience increases user stickiness greatly. Due to the good market positioning and these novel and attractive features, the number of users has kept growing year by year.

However, because of the continuously growing number of users and market demand, and other uncontrolled factors like the policy terms, challenges and uncertainties keep increasing as well. The company has a detailed discussion of these in the prospectus(2018). The following roadmap shows the structure based on the detailed content of the prospectus, and each node is indexed by the page number for reading easily.

The structure of Bilibili Prospectus(2018)

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