Bilibili has recently rolled out a new functionality: pause advertisements on video playback screens. These ads pop up when a user pauses a video. Although this change may seem minor, it has sparked significant user concern.

For quite some time, there have been two starkly opposing viewpoints regarding Bilibili's path to monetization. One camp argues that Bilibili has not fully capitalized on its massive user traffic, which is deemed irrational. The other camp clings to founder Chen Rui's vow of "never introducing pre-roll ads," treating it as an unbreakable principle.

From earlier layoffs this year to the current suspension of ad operations, the 17-year-old Bilibili is confronting existential challenges. To ensure survival, it must expedite revenue generation. However, each stride toward commercialization risks compromising its most valuable asset—its vibrant community atmosphere.

A "Rational Shift" Through Cost Reduction and Efficiency Enhancement

Amid discussions about monetization, Bilibili has, for the first time, released a full-year profit report, bolstering its confidence.

Financial results reveal that Bilibili achieved its first full-year profit under Generally Accepted Accounting Principles (GAAP) in 2025, with a net profit of 1.19 billion yuan, compared to a net loss of 1.36 billion yuan in 2024. The adjusted net profit for the year stood at 2.59 billion yuan, with operating cash flow reaching 7.1 billion yuan, marking an end to years of losses.

In the fourth quarter alone, total revenue soared to 8.32 billion yuan, an 8% increase; net profit reached 510 million yuan, a staggering 478% rise. The gross margin rose for the 14th consecutive quarter to 37%, while the adjusted operating margin improved to 10%, indicating a steady upward trajectory.

Against the backdrop of intense competition in the long-form video industry and short videos continuously capturing user attention, these results are noteworthy.

However, beneath the veneer of profitability, Bilibili's success is not driven by explosive revenue growth but by extreme cost control.

Public financial data reveals that from 2023 to 2025, Bilibili's consolidated gross margin increased from 24.2% to 36.6%, culminating in a GAAP net profit of 1.19 billion yuan in 2025.

The rise in gross margin was primarily fueled by significant reductions in labor and content costs.

The number of content moderators at Bilibili plummeted from 3,874 in 2022 to 2,624 in 2025, a reduction of approximately 32%. Despite this massive reduction, the platform's daily video views surged from 3 billion to over 5 billion, with monthly active creators increasing to 4 million.

The stark contrast between workforce reduction and surging business volume has compelled the platform to heavily rely on AI algorithms for content moderation, increasing the risk of misjudging complex violations and sowing hidden risks for the content ecosystem.

In essence, Bilibili's first full-year profit was a result of cost-cutting measures, expense control, and revenue structure optimization. Following the financial report's release, Bilibili's stock price experienced a slight decline, reflecting investors' cautious stance on its profitability and future prospects.

From an "Ad-Free Sanctuary" to "Pause Equals Ad"

Accelerating commercialization is a necessary step for Bilibili's growth, but the newly introduced "pause ad" feature has ignited long-simmering user discontent.

Pause ads appear beneath the video player when users pause a video on their phones, with a certain probability. They do not obstruct the screen and can be dismissed with a single click.

A noteworthy detail: Bilibili has granted UP masters control over the pause ad feature, stating that related revenue will be linked to creation incentives. Nevertheless, this move is still perceived as a betrayal of its original mission.

For many long-time users, Bilibili was once a rare ad-free haven on the internet. As early as 2016, after briefly introducing pre-roll ads for Japanese dramas, which sparked significant controversy, Chairman Chen Rui publicly declared, "Bilibili may shut down in the future, but it will never deteriorate." This statement has since become a symbol of the spiritual contract between Bilibili and its users.

With the proliferation of splash screen ads, in-feed ads, and now "pause ads," many users feel that the pure viewing experience is gradually eroding, leading to growing controversy.

The core of this controversy lies in the conflicting interests among the platform, users, and creators.

From the users' perspective, ad features dilute the privileges of paid premium members and disrupt the habit of watching without forced interruptions. Although the official claims that ads are "probabilistically triggered, can be closed with one click, and do not block the screen," Bilibili users accustomed to a pure experience feel that pause ads themselves are intrusive.

For small and medium-sized UP masters, this creates an awkward dilemma: enabling ads may alienate fans accustomed to a pure experience, affecting interaction and retention; disabling ads further reduces their already meager income following platform incentive policy changes.

In my opinion, true balance should not involve shifting pressure onto vulnerable creators and tolerant users but should uphold the sincerity of "treating users as friends" during commercial exploration.

Moderation Lapses and Copyright Quagmire

To cut costs and sustain daily active user growth, Bilibili has adopted an aggressive operational strategy in recent years, relaxing its content governance standards.

As mentioned earlier, Bilibili's content moderators decreased by nearly 32% over the past three years. With fewer moderators, the platform increasingly relies on AI algorithms to filter content. However, machine moderation cannot accurately identify violations in complex contexts, a flaw exploited by opportunists, leading to frequent copyright disputes on the platform.

To evade review, some UP masters have developed their own "slang" systems, referring to "Attack on Titan" as "Retreating Dwarfs" and "Breaking Bad" as "My Chemistry Teacher." This is particularly prevalent in the animation and film/TV sectors, where many unauthorized, uncut versions of resources appear "subtly."

Although such pirated and fringe content may temporarily boost search rankings and extend user dwell time, this approach is pushing Bilibili toward legal risks.

According to public information, MBC sued Bilibili in 2021 for users' long-term dissemination of its copyrighted variety shows and dramas, which the platform failed to effectively curb. In March 2026, the Jiangsu High People's Court ruled in its second trial that Bilibili's actions constituted "aiding infringement."

Meanwhile, gaps in content moderation are also evident in the lack of supervision over vulgar and borderline content. Previously, some Bilibili livestreams repeatedly featured softcore pornography, quickly resuming even after bans, indicating the platform's hesitation between pursuing traffic and complying with regulations.

The issues Bilibili faces reflect a broader anxiety among internet platforms: where is the line between cost-cutting and compliant operations?

Balancing Commercial Rationality and Community Warmth

From a niche gathering spot for anime fans to a comprehensive video platform with over 300 million monthly active users, Bilibili has achieved this transformation in just 14 years. However, amid commercialization, it now stands at a crossroads filled with uncertainty.

On one hand, mature internet companies must adhere to survival rules: monetize traffic, reduce losses, and deliver shareholder returns. On the other hand, deeply rooted in Bilibili's community culture is an anti-commercial sentiment: users still remember the promise of no pre-roll ads and UP masters' "creating for love."

The recent turmoil is an external manifestation of Bilibili's internal contradictions.

Behind layoff rumors lies pressure to "cut costs and boost efficiency"; the loss in the infringement lawsuit exposes issues in content moderation and copyright management; the controversy over "forced pop-up ads at video start" touches users' last line of defense for a pure experience.

For Bilibili, the real challenge is not how to make money but whether it can maintain content quality and user experience amid rapid commercialization.

If community trust and content ecosystem are sacrificed for short-term financial gains, even achieving profitability may trap Bilibili in a vicious cycle of "harvesting more, losing more." Finding the optimal balance between commercial rationality and community warmth is Bilibili's greatest challenge ahead.