Caixin Global – Latest China News & Headlines

Home >


CX Live is Caixin Global's real-time news portal, featuring 24-hour breaking news, short-form analysis, and roundups from business and social media in China.

JP Morgan Banker Offered Job to Kerry Logistics Scion in Bribery Case
Solar Energy Firm Hanergy to Delist From Hong Kong
Huawei Will Always Need U.S. Chips: Huawei CEO
Two ‘Big 4’ Banks Expected to Open Wealth Management Units in June
China to Clean Up Excess PPP Borrowing in Fight Against Hidden Debt
Debt-Laden Hong-Kong Brokerage Hints at Lifeline as Winding-Up Petition Looms
News Aggregator Qutoutiao Announces CEO Change in Q1 Report
China Eastern Demands Compensation From Boeing
Loss-Haunted GF Holdings Likely to Get New Economist CEO
Chinese Drone-Maker Responds to U.S. Government's Security Concerns
Novelist Known for Gay Content Sentenced for ‘Illegal Publishing’
Hong Kong-Listed Rare Earth Stock Surges 120% After Xi Visit
Huawei Will Always Need U.S. Chips: Huawei CEO
Tencent's $65 Billion Wipeout Bodes Ill for Hong Kong Stocks
Chip Giant Unigroup to Transfer Linxens to Listed Arm
Xiaomi Beats Forecasts With 27% Revenue Jump in First Quarter
E-Commerce Newcomer Pinduoduo Beats Market Expectations in First Quarter
Ni Hao, Alexa: China Passes U.S. to Become World’s Largest Smart-Speaker Market
Central Bank to Unify Benchmark, Market-Based Lending Rates
JP Morgan Banker Offered Job to Kerry Logistics Scion in Bribery Case
Swiss Drone Makers Eye Chinese Market
Solar Energy Firm Hanergy to Delist From Hong Kong
Beingmate Gets Off Delisting Watchlist — But Has It Really Turned a Corner?
Analysis: Livestreaming Industry Is Now ‘Tencent-Led Oligopoly’

By Liu Shuangshuang and Zhao Runhua / Mar 13, 2019 03:48 PM / Business & Tech

Image: VCG

Image: VCG

Panda.TV, the Chinese livestreaming platform led by Wang Sicong, son of Wanda Group’s chairman Wang Jianlin, shut down its content services on Mar. 8. The company is likely to begin bankruptcy proceedings this month, Caixin has learned. 

Established in 2015, Panda.TV was once considered one of China’s most promising livestreaming platforms, given Wang’s significant capital resources, extensive networks, and strong influence in esports – a field that later has become on of the most lucrative segments of the livestreaming industry.

But things went awry for Panda.TV in three major areas: business model, market competition, and copyright ownership.

Successful livestreaming is essentially dependent on content-production and user management. But Panda.TV’s reliance on Wang’s fame caused the company to neglect internal management and fail to support its livestreamers, who were key to attracting fan subscriptions and payments.

Additionally, livestreaming companies have been squeezed by a combination of intensifying market competition and shrinking user base amid regulatory crackdowns on the industry. According to the China Internet Network Information Center, as of the end of 2018, the total number of livestreaming users declined 6.8% year-on-year to 397 million. In May, rival platform Huya went public on the New York Stock Exchange, further crowding the already-tight pool of available capital for livestreaming platforms.

Last but not least, platforms have faced pressure from Tencent, which owns popular esports game "Honor of Kings" and holds China rights for "League of Legends." Tencent has demanded that non-Tencent affiliate platforms apply for authorization to broadcast livestreams featuring the games. Tencent also has equity in all three leading esports livestreaming companies: Huya, Douyu, and Penguin Esports.

Wang Zhikai, founder of a livestreaming talent agency, says the industry has entered a “Tencent-led oligopoly state,” with the gaming behemoth backing most of the top platforms. He believes the “violent expansion” era of the livestreaming industry is over, and the focus will now shift toward optimizing business models and profitability.

Related: Tencent Unveils Plan to Create Electronic Sports Gaming Empire

Share this article
Open WeChat and scan the QR code
Copyright © 2017 Caixin Global Limited. All Rights Reserved.