Covering a broad range of topics,
is focused on humor, stories and other light entertainment content that delight and inspire. Our content is generally sourced from professional media under licensing arrangements or uploaded by more than two million freelancers registered on our platform.
We introduced a separate mobile application,
, in May 2018 which offers users free literature online. We further introduced
in May 2019, which includes a loyalty program in addition to the standard offerings of
. They both feature an innovative
model that appeals to the online literature reading population, especially those who are keen to read but have a low willingness to pay, who account for the vast majority of online readers in China, and thus having been turned away by the paid-only model of the traditional online literature industry. Supported by advertising, we are able to offer our users a comprehensive selection of literature covering a wide range of genres for free. While
have been very effective in targeting the existing reading population,
has drawn in readers having little or no experience with online literature who subsequently develop a passion for reading. Therefore, the two applications together have achieved broader coverage of the market from a product perspective, and form the two strategic pillars with equal importance in our long-term vision for the online literature market.
We have successfully diversified our content offerings into online games and live-streaming with promising
rates from our loyal users. We will keep improving the quality of content currently on offer and further expanding into more content categories, to create a comprehensive light entertainment content ecosystem. This not only enhances user engagement and retention, but also diversifies our monetization channels.
We currently generate revenues primarily by providing advertising and marketing services. New monetization channels such as online games and live-streaming are still at their early stages, and will contribute a much more meaningful percentage of revenues over time. We have maintained a strong focus on R&D since our founding and materially enhanced our proprietary advertising platform’s monetization efficiency. This has been achieved by enhanced algorithms and the conversion to an oCPC system.
Our net revenues have increased rapidly from RMB3,022.1 million in 2018 to RMB5,570.1 million in 2019, and slightly decreased to RMB5,285.2 million (US$810.0 million) in 2020 primarily due to our strategy to balance operational efficiency and sustainable growth. We have made significant progress on cost optimization and the budgeting process to improve operating margin. We have incurred net losses attributable to Qutoutiao Inc. of RMB1,942.6 million in 2018, RMB2,688.7 million in 2019 and RMB1,104.4 million(US$169.3 million) in 2020.
net losses attributable to Qutoutiao Inc., which represented net losses attributable to Qutoutiao Inc. before share-based compensation expenses, were RMB990.9 million in 2018, RMB2,416.7 million in 2019 and RMB641.2 million (US$98.3 million) in 2020.
We primarily deliver content through
, which is our flagship mobile application and means “fun headlines” in Chinese.
aggregates articles and videos uploaded from content providers and presents real-time customized feeds to users based on each user’s profile, behavior and social relationships.
Feeds are presented to users on both the main page of
and topic pages. Both the main page and topic pages are customized for each user using our content recommendation engine. Topic pages include, among others, videos, entertainment, humor, anecdote, relationship, family, health, food and pets. A user may also search content or follow specific content providers. Users may save their favorite content pages as well as indicate the content pages that they dislike.
We promote social interaction among users to engage them more closely with the content they have viewed as well as with each other. Users may post comments and engage in discussions with other users by responding to comments. A user can also share content through a variety of means, including emails, messaging applications or social networks.
We launched our mobile literature application,
, in May 2018, which offers users free literature supported by advertising. Unlike the traditional paid-only model in the online literature industry which charges users fees for most content offered, users of
can enjoy their favorite literature under an innovative
model. Our users have access to a comprehensive selection of literature covering a wide range of genres, including romance, fantasy, science fiction, history and other genres for free. We classify the content genres with multi-dimensional reading tags which our users can choose to follow. We are able to offer our users free literature as we primarily monetize through advertisements that our advertising customers place on
content recommendation engine coupled with our strong data analytics capabilities also enable us to improve user experience and increase the time our users spend on
by making personalized recommendation and delivering to them literature that caters to their interest.
in May 2019, which combines a loyalty program with the standard offerings from
. The differentiated product design has led to
attracting an incremental reading population whose needs have not been well addressed by
previously. As a result, we have observed minimal user overlap between the two versions.
We have also been exploring opportunities in short videos, which we offer through both the
application and standalone short video applications. It is a large and attractive market and an important part of any content ecosystem. We believe our innovative approach to product design and development positions us well for moving into this market.