China to restrict live-streaming growth
Future. China is kneecapping another one of its wildly successful tech markets, taking aim at live-streaming with regulations that would both limit how much live-streamers can make per day and how much fans can give per day. With so many influencers in the country now making millions from live-streaming, it’s possible that China will see a live-streamer exodus to countries that offer less restrictive oversight.
Cut the stream
Beijing wants to take live-streamers down a notch.
Authorities are looking to limit the amount of money that live-streamers — who typically work in areas such as gaming, music, food, and shopping — can earn per day.
Combining tips, gifts, commissions from products, sponsorships, endorsements, and however else live-streamers make money, reports peg that possible limit at $1,750.
Those earnings usually come in the form of tips, which regulators are also looking to limit how much fans can give per day.
China also plans on passing tighter restrictions on what content can be live-streamed, likely making sure that content lines up with government morality standards.
Live-streaming in China is a $30 billion industry, with over 70% of the country either streaming themselves or watching streams. Separately, the country has recently passed regulations on live-streaming e-commerce, which has quickly exploded in popularity.
Ironically, it was China’s runaway success with live-streaming that inspired many U.S.-based companies to roll out their own features.
Less of everything
Beijing’s moves are part of the larger tech clampdown in the country over the past few years, including for-profit education services, the online video-gaming industry, crypto mining, and even financial services providers. The government is hoping to rein in what it views as mobile-phone addiction, unhealthy spending habits, and an environment that lures young people into dreaming of becoming influencers over anything.
Of course, this is wreaking havoc on China’s über-successful tech companies, who are already feeling the squeeze of a government trying to take back control — after years of letting the free market benefit both the public and private sector. These moves have ended sky-high IPOs and sent stocks tumbling… and with live-streaming companies counting tip-fees as 40% of their yearly revenue, expect several more companies to go down in flames.
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