YY CFO Eric He told analysts during a conference call late Tuesday that the online game broadcasting industry has attracted significant attention since Amazon.com (NASDAQ:AMZN)'s acquisition of video game live streaming site Twitch this summer. That and other "recent acquisitions in the game broadcasting space in the U.S. (have) solidified the legitimacy and potential of this emerging content genre as well as the future growth prospects of this sector," He said.
But there's a flip side. He said, "We have noticed more capital flowing into this sector in China, which has been used for higher sponsorship dollars for professional game teams, as well as providing enhanced video resolutions on their streaming broadcasts."
He said the increased competition "will both temporarily slow our revenue growth projection for online game and broadcasting, as well as increasing expenses for both bandwidth expenditure and sponsorship opportunity over the short term. Over the long term, though, we believe that we will maintain our sizable lead in this marketplace, given our large user footprint and see rationalized return as the sector grows."
Read More At Investor's Business Daily: http://news.investors.com/technology/...e-streaming.htm#ixzz3J2kOUSaU
Follow us: @IBDinvestors on Twitter | InvestorsBusinessDaily on Facebook |
