Is it better for BIGO Live to focus on acquiring new users or increasing monetization from existing high-value streamers?

Introduction

The trade-off between acquiring new users and increasing monetization from existing high-value streamers is a critical decision for BIGO Live's growth strategy. This scenario involves balancing short-term revenue gains with long-term platform sustainability. I'll analyze this trade-off by examining user acquisition dynamics, monetization potential, and overall ecosystem health.

Step 1

Clarifying Questions (3 minutes)

• Based on recent performance, I'm thinking user growth might be slowing. Could you share our current user acquisition rate and churn?

Why it matters: Helps assess the urgency of new user acquisition Expected answer: Moderate growth, increasing CAC Impact on approach: Higher CAC would lean towards focusing on existing users

• Considering our revenue model, I assume a small percentage of streamers generate most revenue. What's the revenue distribution among our top streamers?

Why it matters: Determines the potential impact of focusing on high-value streamers Expected answer: 80% of revenue from top 20% of streamers Impact on approach: High concentration would favor monetization focus

• Looking at user engagement, I'm curious about the retention rates for new users vs. long-term users. Can you provide these figures?

Why it matters: Indicates the value of new users vs. existing ones Expected answer: Higher retention for long-term users Impact on approach: Would influence resource allocation between acquisition and retention

• Regarding our tech infrastructure, how scalable is our current system for handling a significant influx of new users?

Why it matters: Assesses our readiness for rapid user growth Expected answer: Moderately scalable with some limitations Impact on approach: Technical constraints might favor focusing on existing users

• Considering our current team structure, how are our resources allocated between user acquisition and monetization efforts?

Why it matters: Helps understand our operational readiness for either strategy Expected answer: Balanced, with slightly more on acquisition Impact on approach: Would inform necessary team restructuring for chosen strategy