Lionel Sujay Vailshery
Research expert covering cloud computing and emerging tech industries
Live streaming in China - statistics & facts
The pressing need for meaningful connections and authentic content in our fast-paced digital world is fueling the growth of live videos. With its real-time interactions and social engagement, live streaming is revolutionizing the way people consume media. In China, this video format is taking the center stage: in 2024, seven out of ten Chinese internet users had watched livestreams; and four out of ten users streamed live on a weekly basis. For many Chinese viewers, live streaming is not just a platform for entertainment, but also a means to shop, stay informed, and socialize.
In 2022, short video apps Douyin and Kuaishou overtook the long-time champion in transaction value. The large young and urban userbase of Douyin has given it an upper hand to secure its market dominance, whereas Kuaishou’s loyal lower-tier users and community culture have been the foundation for its robust growth.
From fun to commercial
First appearing in China’s online scene in 2003, live streaming has seen several industry shifts, with new players and disruptors reshaping the landscape. Live entertainment shows were the early winners until 2014, when the popularity of game streaming and eSports took over. In 2016, the Chinese tech major Alibaba introducedlive streaming e-commerce which soon became the sector’s powerhouse. Currently, the live streaming industry constitutes of four main segments — e-commerce, sports, gaming, and entertainment.A power shuffle in live commerce
Live commerce is a lucrative market with an estimated market size at seven trillion yuan and about 833 million audience. Half the mobile shoppers in China tuned in live selling videos for shopping advice and deals. For many years, the country’s largest e-commerce site Taobao was the frontrunner in the arena but its reliance on several scandalized A-list live streamers took its toll.In 2022, short video apps Douyin and Kuaishou overtook the long-time champion in transaction value. The large young and urban userbase of Douyin has given it an upper hand to secure its market dominance, whereas Kuaishou’s loyal lower-tier users and community culture have been the foundation for its robust growth.
A bright outlook of live game streaming
Accounting for about 30 percent of gaming revenue, China’s live game streaming market was valued at 110 billion yuan. Despite the country’s tightening play time limits for minors, the sector managed to grow at double digits much driven by surging eSports streaming. Apart from audience tips and advertising, game streaming platforms generate revenue from subscription, game operation, and guessing games. Huya and Douyu hold the most broadcast rights of eSports tournaments, including top titles Honor of Kings and Peace Elite, which made the long-standing rivals far ahead of the rest. In the coming years, their diverse monetization models would reap the fruits of technological progress in 5G, cloud computing, and virtual reality.Challenges in live entertainment streaming
Live entertainment streaming is another industry driver with advertising, user tips, and virtual gifts being the key revenue streams. The 180 billion yuan worth sector has undergone paradigm shifts from PC to mobile streaming and from professional to user-generated content. YY Live, an audio platform turned into live streaming, is the only early player remaining after the waves and was acquired by the Chinese search engine Baidu in 2020. Its closest opponents Huajiao and Inke had far less than its monthly active users. Facing flattening active user growth and declining traffic due to the rise of short videos, the sector has brought in new exciting content, such as reality shows, travel, in-store shopping, and dining.
