Kuaishou Technology, a leading Chinese social media firm, announced on Tuesday that Beijing Dajia (on behalf of Kuaishou) and Tencent Computer have entered into the “2022 Game Cooperation Framework Agreement,” as well as the “Other Marketing and Promotion Services Framework Agreement.”
Under the deal, both parties agree to conduct various cooperation regarding games, and to provide certain new types of marketing and promotional services alongside each other. The timespan of the 2022 Game Cooperation Framework Agreement will commence on May 24, 2022 and end on December 31, 2023, subject to renewal upon the mutual agreement of both parties and in compliance with designated rules.
Kuaishou will, as a member of the e-sports league of the represented Tencent group, operate its e-sports clubs, set up and adjust its teams, and participate in its e-sports events.
In recent years, Kuaishou has won a number of livestreaming copyrights for sports events and games. In January, Kuaishou obtained broadcasting rights for the Beijing Winter Olympics. According to the official statistics of Kuaishou, during the Olympics, its on-demand broadcast volume reached 7.94 billion. In February, Kuaishou reached a copyright cooperation with UEFA, and was granted the live broadcast, short video copyright and second creation authorization for this season’s Champions League. Chen Tianhua, Vice President of Kuaishou Games and Head of the Game Ecology Department, said previously that the content of copyrighted events is a key for Kuaishou to open the core user market of e-sports.
In the first quarter, Tencent’s game revenue in the Chinese market decreased by 1% to 33 billion yuan ($4.95 billion). In the international market, Tencent‘s game revenue increased by 4% to 10.6 billion yuan, reflecting an increase in revenues from games including VALORANT and Clash of Clans, partly offset by a decrease in revenues from PUBG Mobile as user spending normalized in the wake of the pandemic.