Mais conteúdo relacionado Semelhante a Introduction to the_chinese_streaming_market (20) Mais de digitalinasia (20) Introduction to the_chinese_streaming_market1. And how it differs to the West
An introduction to
3. © Newzoo 2019
Navigating and understanding China’s unique streaming ecosystem
3
Tianyi Gu
China Market Analyst
China’s streaming ecosystem is a far cry from what’s going
on in the West, in terms of content, monetization, and how
the audience interacts with the content. While platforms
such as Twitch and YouTube generate the majority of their
revenues through subscriptions, China’s biggest platforms,
including YY Live, Huya, and Douyu, predominantly make
money from user donations to streamers. Streamers take
home around 30-40% of these donations, with platforms
and streaming guilds receiving the rest. Streaming guilds
are essentially celebrity management companies that
recruit, train, and promote signed streamers.
Viewers in China are more willing to spend big on general
entertainment content than on games, so platforms such as
Huyu, Douyu, and Tencent Egame are experimenting with
new promotion strategies to put their streamers in the
spotlight. This has resulted in a slew of reality TV shows
aiming to bridge the gap between game streaming,
esports, and general entertainment, with some promising
results.
China is a mobile-first country and this is reflected in its
game-streaming market. The collective nature of traditional
Chinese culture also means that its viewers engage with
content differently to Western viewers. Interactions
between viewers and the streamers are far more prominent
in China, thanks to innovative platform features such as
bullet chats. Chinese streaming platforms are also generally
less toxic toward women, as gender balance is very
important in Chinese culture. In fact, there is less toxicity all
round, as gaming and streaming are considered social
activities in China.
In this whitepaper, we deep dive into the Chinese
streaming ecosystem, zooming in on its unique features, its
most popular titles and streamers, and how it differs to the
Western streaming market.
The average user donations
received by a top 100
streamer in 2018 (before
platforms/streaming guilds
took their cut).
Note: For this whitepaper, we used the year-end exchange rate of 1 USD = 6.8755 CNY.
5. © Newzoo 2019
of Huya’s revenues in
2018 came from user
donations.
of the top 100 Chinese
streamers in 2018 were
non-game streamers.
6. © Newzoo 2019
How platforms monetize in China differs from the West
6
Entertainment content on live-streaming platforms is far more
popular in China than in the West. In fact, seven of 2018’s top 10 Chinese
streaming sites focus on general entertainment, including singing and dance.
In the West, however, most of the top platforms—like Twitch and YouTube—
are focused on games for live streaming.
Streaming platforms in China also feature different monetization strategies
compared to the West. Twitch and YouTube generate most of their revenues
via subscriptions and advertising, while Chinese platforms monetize by taking
a cut of virtual-item sales, which are often used as donations to streamers. In
2018, 95% of YY Live’s and Huya’s revenues came from the sale of virtual
items. China’s mobile-first culture is also a factor, with many Chinese
streaming sites being optimized for smaller screens. Four of China’s top 10
streaming sites are mobile first.
China’s game-streaming market first exploded in 2013 and 2014 when
platforms like Douyu and Huya launched. These platforms became the market
leaders by pouring capital into attracting top streamers. Both platforms
signed plenty of million-dollar exclusivity deals with top streamers. The initial
craze saw large amounts of money flowing into the market; yet, something
had to give. Eventually, the bubble burst. PandaTV, China’s third-largest
game-streaming platform in 2018, filed for bankruptcy in March 2019. Up until
this point, the company struggled for two years and ultimately failed to
secure investment. Today, the Chinese game-streaming market is more
stable, dominated by Huya and Douyu. Interestingly, Tencent owns a stake in
both these platforms. These top platforms have shifted their focus to original
content creation and buying third-party media rights.
TOP 10 STREAMING PLATFORMS IN CHINA
By user donations | 2018
#
STREAMING
PLATFORM
CONTENT
FOCUS
MAIN
PLATFRORM
USER
DONATIONS
1 YY Live YY直播 Entertainment PC $1,518M*
2 Huya 虎牙 Games PC $646M*
3 Huoshan 火山直播 Entertainment Mobile $542M
4 Inke 映客 Entertainment Mobile $458M
5 Douyu 斗鱼 Games PC $433M
6 Huajiao 花椒 Entertainment Mobile $217M
7 Kuaishou 快手 Entertainment Mobile $169M
8 PandaTV 熊猫直播 Games PC $167M
9 Fanxing 繁星直播 Entertainment PC $134M
10 KKTV KK直播 Entertainment PC $116M
Source: Newzoo in partnership with
* Source: public financials.
7. © Newzoo 2019
Entertainment plays a central role when it comes to platforms promoting game streamers in China
7Source: Newzoo in partnership with
Owing to the Chinese audience’s willingness to spend big
on general entertainment, non-game streamers earn far
more via donations than game streamers. For example, 87
of the top 100 in 2018 streamers (by donations) were non-
game streamers. On average, a top 100 streamer received
$3.66 million in donations in 2018 (before guilds and
platforms took a cut), with game streamers averaging $3.57
million and non-game streamers averaging $3.67 million.
Looking at the platforms used by the top 100 streamers, 45
streamed via YY Live, 17 via Huya, and 11 via Douyu.
In a bid to increase revenues from donations, game-
streaming platforms are now innovating their streamer-
promotion strategies. Huya, Douyu, and Tencent Egame, for
example, have each produced an original variety show
starring game streamers. Even Riot Games, the publisher
behind League of Legends, is partnering with Tencent, LoL
Pro League, and Douyu for the “Go! Heroes’’, which will
show three celebrities setting up professional LoL teams
and inviting top streamers to compete against one another.
Similarly, Huya’s “Godlie’’ features the platform’s top game
streamers playing the boardgame Werewolf. Meanwhile,
Tencent organizes the “Egame 202’’ talent show, which
gives contestants the chance to win a streaming
partnership with the platform. This kind of shoulder content
is great for reaching new demographics.
of the top 100 Chinese
streamers by donations in 2018
were non-game streamers.
The average user
donations received by a
top 100 streamers in 2018.
8. © Newzoo 2019
Huya and Douyu compete for market leader
YY.com established the first gaming-
specific streaming platform, YY
Gaming, which launched back in 2012.
In 2014, the platform became so
popular that it spun off as an
independent entity: Huya. In May
2018, Huya became the first public
Chinese game-streaming platform.
Huya reported $678.3 million in
revenues in 2018 (+113.4% year on
year), and 116.6 million MAU (+34.5%
year on year) at the end of 2018.
Popular Asian esports leagues such
as LPL, LCK, and KPL have all been
broadcast on Huya.
Douyu was the first game-streaming
platform to pour a huge amount of
capital into signing top streamers. In
just two years, this strategy helped the
platform overtake Huya as the largest
game-streaming platform in China.
While other platforms catching up,
Douyu had already shifted its focus to
content creation, aiming to cover a
broader spectrum of content. Fast
forward to today, and the platform
now actively organizes first-party
esports tournaments. Douyu, however,
failed to capitalize on China’s mobile
esports boom between 2016 and 2017,
meaning Huya was able to catch up.
HUYA
Founded In: Nov 2014
HQ: Guangzhou, China
DOUYU
Founded In: Jan 2014
HQ: Wuhan, China
Game streaming
platform in China by
user donations in 2018
Game streaming
platform in China by
user donations in 2018
8Source: Newzoo in partnership with
10. © Newzoo 2019
Severe competition makes it difficult for streamers to succeed without a guild
10
TOP 10 STREAMER GUILDS IN CHINA
By business value* | As of Dec 31, 2018
# STREAMER GUILDS
CONTENT
FOCUS
BUSINESS
VALUE
DONATIONS
IN 2018
ACTIVE
STREAMERS
1 Bgoose 大鹅文化
(Mobile)
Games
$173M $21M 1,378
2 Aipai 爱拍原创 Games $133M $34M 442
3 xRock 炫石互娱 Games $128M $17M 878
4 YW Media 渝万传媒 Games $107M $27M 4,870
5 Wudi Media 吉林舞帝传媒
Entertain-
ment
$105M $72M 246
6 China Blue 中国蓝娱乐
Entertain-
ment
$101M $78M 685
7 Famulei 伐木累 Games $78M $15M 40
8 Elephant EL-小象互娱 Games $73M $19M 863
9 Yujia 娱加 Combined $71M $40M 213
10 AO 傲之最 Games $68M $19M 515
* The business value of a guild is the aggregation of business values of individual streamers in
the guild. The business value of a streamer is mainly estimated based on donations, advertising
income, and proportion of paying users among his/her followers.
Source: Newzoo in partnership with
Streamer guilds in China are similar to celebrity management
companies; they recruit, train, and promote signed streamers, earning
revenues by taking a cut of the streamers’ earnings. Guilds help
streamers build stronger connections with their followers, ultimately
resulting in more revenues from user donations. Every party benefits:
the streamers, the platforms, and, of course, the guilds themselves.
China’s unique ecosystem of platforms guilds, streamers, and viewers
fosters the development of live-streaming communities, helping
platforms and streamers boost user engagement and retention rates.
China’s streamers are not obligated to join a guild, however. While
independent streamers benefit from keeping 100% of their earnings,
they often lack the resources, assets, and reach necessary to grow a big
community. With hundreds of streaming platforms and countless
streamers, it is even more difficult for independent streamers to stand
out—especially if they are newcomers.
Despite the fact that entertainment content is more popular than game
content in China, its gaming-focused guilds are generally bigger. Many
companies are vying for a piece of the entertainment pie, meaning
competition between entertainment-focused guilds is fiercer. What’s
more, game-focused guilds tend to represent more streamers and are
spread across several platforms. This results in higher valuations. China’s
fastest-growing guild by far is Bgoose Culture, mostly due to the
company quickly adapting to the mobile esports boom. It now
represents many of the top Chinese streamers for Honor of Kings, PUBG
Mobile, and CrossFire Mobile—three of China’s most popular mobile
esports titles.
.
11. © Newzoo 2019
This is very important in China from a cultural perspective
11
Screenshot of bullet chats when the Chinese team Invictus Gaming won the 2018
League of Legends World Championship in November 2018. Source: Bilibili.
bullet chats were posted on
official channels of the 2018
LoL World Championship
during the elimination stage.
Source: Newzoo in partnership with
TOP 3 STREAMING PLATFORMS IN CHINA
By total number of bullet chats | 2018
1.
2.
3.
10 billion
8 billion
6 billion
Bullet chats are user comments that move across users’ screens like bullets
when using a streaming platform. These comments are just one way for users to
interact with streamers. The concept originated from Japanese video-sharing
platform Niconico. In China, AcFun was the first platform to use the feature, but
they were popularized in the market by leading anime-streaming site Bilibili.
Bullet chats are now so popular in China that almost every site now features
them, including iQiyi and Youku, which are essentially China’s versions of Netflix
and YouTube, respectively. Chinese streaming platforms monetize bullet chats by
giving users the chance to buy additional features, such as different text colors.
Many find bullet chats annoying at first, as they can become so active that they
cover the video itself. However, they help Chinese viewers feel more connected
to other viewers. This fits in with traditional Chinese culture, which values
collectivism and social connection. Simply put, bullet chats have transformed
China’s live-streaming viewing experience by adding a new level of interaction.
Although China’s entertainment-streaming platforms generate more revenues via
donations, game-streaming platforms have far higher user engagement. In 2018,
Huya boasted the most bullet chats in the Chinese streaming ecosystem, with 10
billion. What’s more, viewers of game content tend to be outspoken while
discussing streamers’ tactics and techniques. Esports content, in particular,
evokes a strong emotional response from viewers—especially if their favorite
teams or players are involved. For example, when a Chinese team made it to the
elimination stage of the 2018 League of Legends World Championship, more than
9 million bullet chats were shared on the competition’s official Douyu and Huya
channels.
13. © Newzoo 2019
of the most streamed
games in China were
mobile games in 2018,
vs. none on Twitch.
14. © Newzoo 2019
In 2018, 75% of the of streams generated by the top 10 games came from mobile titles
14Source: Newzoo in partnership with
TOP 10 GAMES ACROSS CHINESE
STREAMING PLATFORMS
By number of streams | 2018
# GAME PLATFORM PUBLISHER
NUMBER
OF
STREAMS*
1 Honor of Kings Mobile Tencent 42.0M
2 PUBG Mobile Mobile Tencent 20.7M
3 PUBG PC Tencent 10.0M
4 League of Legends PC Tencent 9.6M
5 CrossFire Mobile Mobile Tencent 4.5M
6 PUBG - Full Ahead Mobile Tencent 3.6M
7 CrossFire PC Tencent 3.5M
8 Knives Out Mobile NetEase 3.1M
9 QQ Speed Mobile Mobile Tencent 2.9M
10 Dungeon & Fighter PC Tencent 2.2M
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
TOP 10 GAMES ON
TWITCH IN 2018
Mobile gaming is massive in China, with 70% of the online
population having played mobile games in 2018. Six out of the
top 10 most-streamed games in China were mobile games
across all streaming platforms.
What’s more, three-quarters of all streams for the top 10 games
were mobile titles. In contrast, there were no mobile games on
Twitch’s top 10 most-streamed titles for 2018. Naturally, games
that are popular on Twitch are not necessarily big in China.
Fortnite, for example, was Twitch’s most-streamed title in 2018
with 58 million streams. Yet, it was not popular at all in China,
where PUBG was far more prevalent. Together, PUBG, PUBG
Mobile, and PUBG – Full Ahead totaled 34 million streams in
China in 2018, compared to 11 million on Twitch.
Looking at the Twitch top 10, there is far more diversity when it
comes to IP. The top 10 for China’s streaming platforms is much
less varied; most titles are mobile adaptations of successful PC
franchises like PUBG and CrossFire. Almost every top PC game
in China has been adapted to mobile. These mobile versions
often grow so big that they eclipse the original title. The two
mobile PUBG titles attracted more than 24 million streams,
compared to the original PC version’s 10 million. Similarly,
China’s top game (by streams) is MOBA Honor of Kings (known
as Arena of Valor in the West). It is widely seen as the mobile
version of League of Legends. Honor of Kings had 42 million
streams across all China’s streaming platforms in 2018—four
times as many as League of Legends.
By number of streams
* A stream is any session when a streamer starts broadcasting live.
15. © Newzoo 2019
Tencent leads in the Chinese games, esports, and streaming markets
15Source: Newzoo in partnership with
GAMES
MARJOR
PROFESSIONAL
LEAGUES
STREAMING
PLATFORMS
of the top 10 streamed games
in 2018 were published by
Tencent in China.
FULLY OWNED
INVESTMENTS
TENCENT EGAME: Founded in 2016, Tencent Egame has become one of
the most popular streaming platforms in China thanks to the media rights it
has secured via Tencent, China's largest publisher. Tencent Egame
broadcasts esports content for China’s most popular games, including
League of Legends, Honor of Kings, and PUBG.
DOUYU: Tencent invested $630 million in Douyu in March 2018, giving the
platform media rights to major Tencent-owned game and esports content.
HUYA: On the same day as its Douyu investment, Tencent also invested
$462 million in Huya. Between the second and third anniversary of the deal’s
closing date, Tencent can purchase additional Huya shares at a fair market
price. This gives Tencent a chance to have a majority stake in the company.
17. © Newzoo 2019
Average earnings of the
top 10 Chinese game
streamers from donations
in 2018 vs. $5,708 per
capita disposable income
in rural China*.
Donations to the #1
Chinese streamer in 2018
— almost as much as Ninja
is estimated to earn via
Twitch subscriptions.
* Source: National Bureau of Statistics.
18. © Newzoo 2019
This is almost as much as Ninja is estimated to earn from his Twitch subscriptions
18Source: Newzoo in partnership with
TOP 10 GAME STREAMERS IN CHINA
By user donations | 2018
# STREAMER PLATFORM GAME FOCUSED
DONA-
TIONS
1 XuXuBaoBao 旭旭宝宝 Douyu Dungeon & Fighter $10M
2 LongMing 龙溟 NetEase CC
Fantasy Westward
Journey PC
$5M
3 A’Leng 阿冷 Douyu League of Legends $3M
4 TongNanZi
再续前缘
童男子
NetEase CC
Fantasy Westward
Journey PC
$3M
5 KangZou 抗揍 NetEase CC
Fantasy Westward
Journey PC
$3M
6 FengTiMo 冯提莫 Douyu League of Legends $3M
7 CiKe 刺客 NetEase CC
Fantasy Westward
Journey PC
$3M
8 FeiLingXue 妃凌雪 Douyu PUBG $3M
9 yyfyyf Douyu Dota 2 $3M
10 pigff Douyu PUBG $3M
* Data as of March 25, 2019.
Game streamers in the top 10 generated an average of $4
million in donations in 2018. The streamers usually receive a 30-40%
cut of these donations, with the platform/streaming guilds receiving
the rest. This means that the top 10 streamers earned between $1.2
million and $1.6 million from donations in 2018. In comparison, the
yearly disposable income in rural China in 2018 was just $5,708,
according to the National Bureau of Statistics.
China’s most popular game streamer is undoubtedly XuXuBaoBao. In
2018 alone, XuXuBaoBao generated more than $10 million in user
donations (before guilds and platforms took a cut), which
approaches our estimate of Ninja’s earnings from Twitch subscribers
(before Twitch took a cut). Like many streamers, this success comes
from a combination of his game skills, humor, and engagement with
the audience. XuXuBaoBao mainly streams Tencent’s Dungeon &
Fighter via Douyu. This title was Tencent’s first big hit in the Chinese
games market back in 2007. XuXuBaoBao is the title’s only
streaming superstar. The same cannot be said for other big titles like
League of Legends and PUBG, which are streamed by multiple top
streamers. In 2018, XuXuBaoBao accounted for almost 30% of all
donations to Dungeon & Fighter streamers.
Notably, streamers of NetEase’s Fantasy Westward Journey
attracted a lot of donations in 2018. Despite launching in 2003, the
turn-based MMOPRG remains one of China’s most popular PC games.
Players of the game are known for their big spending power and are
even willing to pay to watch.
19. © Newzoo 2019
NUMBER
OF
STREAMERS
SHARE
OF
DONATIONS
5/10 71%
3/10 44%
3/10 33%
1/10 8%
AVERAGE
DONATIONS
RECEIVED
$2.1M
$2.1M
$0.6M
$0.9M
In general, gaming and streaming are a lot less toxic for women in China than in the West
19Source: Newzoo in partnership with
GENDER SPLIT AMONG TOP 10 STREAMERS
By user donations | 2018
SHARE
OF
DONATIONS
NUMBER
OF
STREAMERS
5/10 29%
7/10 56%
7/10 67%
9/10 92%
AVERAGE
DONATIONS
RECEIVED
$0.9M
$1.2M
0.6M
$1.1M
Female streamers are far more popular in China
than they are in the West. Of China’s most popular games,
League of Legends has the most female streamers in the
top 10 (by user donations). In fact, half of 2018’s top 10
League of Legends streamers in China were women,
including the top four. Together, these five female
streamers accounted for 71% of the user donations
received by the top 10, with an average of $2.1 million per
person. In contrast, the top five male streamers received
an average of $0.9 million.
Despite the fact that both PUBG and PUBG Mobile had
fewer female streamers in the top 10 in 2018, women still
received more user donations than men. Honor of Kings
was the only game in which male streamers dominated in
terms of donations.
While the West’s streaming ecosystem is often toxic
toward women, the Chinese market is more equal. The
reasons for this are twofold. Firstly, gaming and streaming
are considered social activities in China, and gender
balance is important. Secondly, China’s streaming business
is more focused on entertainment, so viewers tend to be
less outspoken and more inclusive.
WOMEN MEN
20. © Newzoo 2019
They operate side businesses as well
20Source: Newzoo in partnership with
Many big Chinese streamers have introduced their own guilds in order to
secure a higher share of their earnings. In August 2017, China’s #1 game
streamer, XuXuBaoBao, set up the streamer guild xRock Entertainment,
which grew to become the third-largest guild in 2018.
SETTING UP STREAMER GUILDS
Streamers known for their advanced gaming skills have also set up their
own professional esports teams: 17 Gaming and Four Angry Men, two
professional PUBG teams, for example. 17shou, the streamer who started 17
Gaming, is even one of the players on the team.
ENTERING THE PROFESSIONAL ESPORTS SCENE
Cyber cafés are popular in China, as they provide high-quality hardware,
peripherals, and high-speed Internet connections. Top streamers now
commonly own cyber café groups. Physical venues for the board game
Werewolf are also popular. JY, the biggest Werewolf streamer, owns
several Werewolf gaming centers across China.
CREATING OFFLINE GAMING EXPERIENCES
Like in the West, Chinese streamers are keen to develop a unique brand of
merchandise and peripherals. Many of the top female League of Legends
streamers have opened their own web shops selling gaming peripherals on
Alibaba’s Taobao and JD.com. These well-known streamers have attracted a
lot of traffic to these sites.
INVESTING IN MERCHANDISES & PERIPHERALS
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23. And how it differs to the West
An introduction to