Why Baidu Is Buying Live‑Streaming Platforms to Boost User Stickiness

Three years after establishing a mobile content ecosystem built on a "search + feed" dual engine and a "Baijiahao + mini‑program" dual ecology, Baidu is still searching for ways to attract and retain users.

In November, Baidu announced a $3.6 billion cash acquisition of YY Live, aiming to reinforce its mobile content ecosystem. CEO Robin Li cited two reasons: synergies from YY Live and diversification of Baidu's revenue sources.

Senior Vice President Shen Dou explained that high‑stickiness YY users can be converted into users of other Baidu services, thereby increasing dwell time across Baidu’s apps.

Despite being one of China’s largest traffic sources, Baidu’s traffic quality lags behind Alibaba and Tencent, and its ad‑driven model is being challenged by the rise of short‑video and live‑streaming platforms.

QuestMobile data shows that by September 2020, short‑video products from Toutiao and Kuaishou dominated user‑time battles, while Baidu’s share fell from 9.1% to 8.5%.

According to Baidu’s Q3 2020 financial report, the Baidu app’s daily active users reached 206 million, but net new users in a year were under 10 million, indicating weak growth and low stickiness.

The shift from PC‑centric search to algorithm‑driven recommendation engines reshaped the Chinese internet, making content consumption addictive and time‑intensive. Companies like WeChat and Taobao have also introduced features to extend user sessions.

Baidu’s lack of a unified account system hampers cross‑product integration and user‑level analytics, limiting its ability to build strong community ties and precise targeting.

Historical missed opportunities—such as the rise of Baidu Tieba, Baidu Cloud (later Baidu Netdisk), and the potential to emulate platforms like Zhihu—illustrate the consequences of not establishing a robust account ecosystem.

Under new leadership, Baidu announced an "All‑in‑AI" strategy, yet it still relies on acquisitions like YY Live to supplement its information‑flow business and improve user retention.

In summary, Baidu’s acquisition of YY Live is a tactical move to inject fresh traffic, enhance its recommendation engine, and address the fundamental challenge of low user stickiness in a competitive mobile ecosystem.

Source: 字母榜