China’s Pan-Entertainment Live Streaming Market Takes Initial Shape

Source:iResearch August 08,20172:06 PM
The revenue of China’s pan-entertainment live streaming market hit 20.83 billion Yuan in 2016, up 180.1% from an earlier year. More than 90% of such revenue was contributed by viewers payment. The rest was from enterprises who conducted joint operation of gaming through live streaming platforms.

iResearch holds the opinion that there are several reasons behind the rapid expansion of the pan-entertainment live streaming market. Firstly, the thriving mobile live streaming makes live streaming more accessible and pushes up the increase of viewers. Secondly, online payment prevails and becomes more convenient, which encourages viewers to buy visual gifts for streamers. As a result, the number of paying viewers increases and ARPU also rises. Finally, contents of live streaming have been updated and become more valuable. and viewers are more willing to pay for such contents.
The data from iResearch show that pan-entertainment live streaming market registered sustained growth before November 2016 after an explosive growth in 2015. However, monthly active viewers of pan-entertainment live streaming have been in decline since December 2016. By the end of Q1 2017, viewers of pan-entertainment live streaming via mobile devices have reduced to 107 million.

iResearch finds that the number of pan-entertainment live streaming viewers is approaching the ceiling. Bonus from the rapid increase of viewers in the first half of 2016 has disappeared. In addition, the pan-entertainment live streaming market has entered its harvest stage. Therefore, the market will see a fiercer competition among top platforms in attracting viewers.

2016 saw many players join in the pan-entertainment live streaming industry. After half a year of development, the first-tier group of the players has got stable viewer base in early 2017. It is estimated that more viewer will concentrate in the first-tier group in the future. Medium-sized players are still in the period of instability and will face severe challenges as costs of developing new viewers will increase. Moreover, there are still many small-sized players in pan-entertainment live streaming market, who release indelicate contents through the platforms. Up to now, these platforms are beyond control and surveillance of Chinese government because the traffic generated is little. If the government exercises tight control in the future, such platforms will be closed.

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