Market scale is expanding rapidly, platforms' profitability keeps improving
In 2019, China's game livestreaming market grew rapidly. The size of the game livestreaming platform market exceeded 20 billion yuan. The total revenues of Huya.com increased by 79.6% YoY in 2019. The total revenues of Douyu increased by 99.3% YoY and its market size is expected to reach around 40 million yuan in 2021. In general, the fast growth of the market size is mainly driven by two factors. Firstly, the control of the costs of bandwidth and streamers will drive the continuous improvement of the platform's profitability. Secondly, the scale of paying users on the platform and the expansion of new businesses like live commerce, cloud gaming, and paid livestreaming drive the rapid market expansion.