(Yicai Global) Dec. 23 -- Tencent will put more emphasis on its TikTok-like platform Channels as video clips are eroding the amount of time people spend watching long-form videos and playing games, the chief executive officer of the world's largest gaming firm said recently.

The growing popularity of short videos among users is prompting Tencent to adjust its business strategy, Pony Ma, who is also founder and chairman, said in a speech at an employee conference last week which began to circulate on social media yesterday.

Tencent has done a lot to integrate videos with online retail and expects to bring Channels closer to transactions and achieve an e-commerce closed loop, he added.

The online version of Ma’s speech is accurate, a company insider told Yicai Global. President Liu Chiping also talked about cutting costs and improving efficiency at the conference, he said.

Channels is becoming a very important part of Shenzhen-based Tencent’s business and will develop into a good source of profit if it can generate enough liquidity, Liu said previously.

Tencent hopes to expand its gaming business, which accounts for more than half of its total revenue, by working with more partners, exploring more international markets and focusing on developing high-quality games so as to make the most out of its gaming licenses, Ma said.

The tech giant’s revenue fell in the first two quarters on lower income from video gaming and online advertising, but it managed to stage a comeback in the third quarter, posting a 4.5 gain quarter on quarter to CNY140.1 billion (USD20 billion). The firm is on track to log profit growth this quarter, industry insiders say.

Ma issued a stern warning to unprofitable business segments. The Platform and Content Group, which comprises the firm’s news aggregator Tencent News, underwent a big shake-up this year, shedding many staff.

“When people said to me that the logo on top of Tencent’s headquarters is that of its instant messaging service QQ, how can Tencent possibly cut its news business, I said it is possible,” Ma said. “If the business cannot take full responsibility for its profits and losses and continues to lose money and have other problems, there will be not much time left for Tencent News.”

Many of Tencent’s employees told Yicai Global that they agreed with what Ma said. “His speech pointed out directions for the firm’s future development,” one said. “The boss has got the key point, which means he has his finger on the pulse,” another said. “If you follow Tencent’s employee conference every year, you’ll know Pony Ma talks straight.”

But some people think Ma is taking action on the development direction of the firm’s business groups too slowly.

Editor: Kim Taylor