Glory Star New Media Holdings Outlines Vision for Future in Interview with Chief Entertainment Officer Magazine
BEIJING, July 14, 2020 (GLOBE NEWSWIRE) -- Glory Star New Media Group Holdings Limited (NASDAQ: GSMG) (“Glory Star” or the “Company”), a leading mobile and online digital media and entertainment company in China, today announced that the Company’s Chief Executive Officer, Mr. Bing Zhang, was interviewed by Chief Entertainment Officer Magazine on July 13, 2020. Chief Entertainment Officer Magazine is a social media group focused on covering online entertainment in China. The full transcript of the interview can be accessed on the Company’s investor relations website at http://ir.gsmg.co/. The following excerpts are English language translations of key highlights from the interview.
Integrating E-Commerce into Live Streaming Content
Mr. Zhang commented, "The premium content on our CHEERS App plays an essential role in our integration of live streaming services with e-commerce services. This premium content can take the form of videos, short-form videos, games, and interactive live streaming. Our professionally curated lifestyle content has enabled us to attract a healthy following of users in pursuit of increasingly modern lifestyles. Our extensive user base of this targeted demographic has made us an ideal partner for premium lifestyle brands and businesses in China. As we continue to leverage the quality of our professionally generated content as well as our market-leading content production capabilities, we will also continue to expand our business partnerships and user base.
Meanwhile, we have adopted a comprehensive brand selection process to ensure the quality of all products on our platform, evaluate each brand’s track record, and maintain robust customer support capabilities. To date, we have integrated cosmetic, personal care, and food products as well as a wide range of digital products into our live streaming & e-commerce model."
A Unique Live Streaming & E-Commerce Business Model
Mr. Zhang highlighted, "The uniqueness of our business model is a result of our strategic focus on our platform's products and users. As of now, we have established distribution agreements with 450 brands and are on track to partner with up to 1,000 brands by the end of 2020. Our partner brands now offer more than 19,000 SKUs across nine different categories on our platform for our users to access while enjoying our curated live streaming content.
Total CHEERS App downloads exceeded 106.5 million as of April 30, 2020, while CHEERS App average DAUs reached 4.1 million during the first quarter of 2020. In addition, our products, which are both cost-effective and of a premium quality, as well as our content production expertise have helped to ensure the quality of our user base. During the 6.18 e-commerce shopping festival, for example, half of the paying users on CHEERS e-Mall came from first- and second-tier cities, which is a group of consumers generally characterized by above-average purchasing power.
In order to fully utilize our massive base of highly-targeted users and encourage higher user engagement, we have launched four new interactive features on our CHEERS e-Mall platform. Going forward, we plan to continue introducing more innovative ways to foster interactions between users and live streaming hosts on our platform. Such user engagement will enable us to both convert and monetize our user traffic. Ultimately, our goal is to create a platform through which all parties can host live streaming sessions and market any product during these sessions at the same time."
Glory Star’s Future Plans for Its Live Streaming & E-Commerce Model
Mr. Zhang added, "In the current live streaming market, most brands still rely on a low pricing strategy to attract consumers and facilitate transactions. As a consequence, businesses are not able to generate any profit from the sale of products through live streaming content. We believe that live streaming platforms will have to shift their focus from a low pricing strategy to a strategy based on quality products and services in order to ensure their business model sustainability and attract more users going forward.
Our live streaming content mainly consists of professionally generated content, which has allowed us to better control and standardize our platform’s content quality. Looking ahead, we plan to utilize our live streaming tools in order to help our users create and share their own content, socialize within their individual networks, and integrate their content with products on our CHEERS App to earn rewards. In fact, one of our key strategies for the second half of 2020 is to create a mutually beneficial environment for our users, our partner brands, and our platform."
About Glory Star New Media Group Holdings Limited
Glory Star New Media Group Holdings Limited is a leading mobile entertainment operator in China. Glory Star’s ability to integrate premium lifestyle content, including short videos, online variety shows, online dramas, live streaming, its Cheers lifestyle video series, e-Mall, and mobile app, along with innovative e-commerce offerings on its platform enables it to pursue its mission of enriching people’s lives. The Company’s large and active user base creates valuable engagement opportunities with consumers and enhances platform stickiness with thousands of domestic and international brands.