China Online Game Live Broadcast Industry: Leading Players are Enjoying the Benefit

Not long ago, the Panda Live officially posted a picture with a panda saying "Bye", and was closed subsequently. After the explosive growth in 2016, China’s online game live broadcast industry gradually subsided and the industry began to return to rationality.


A Mature Industry

With the development of the habit of watching live show, the user's ability to pay has been continuously improved. Online live broadcast market in China reached 36.96 billion yuan in 2017, with a growth rate of 83.3%; the user scale reached 390 million, with an increase of 25.8%.

And the development of China online game live broadcast industry follows. As online game live broadcast industry enters a mature stage, each platform begins to operate in a refined manner, with profit as its primary goal. Although the demographic dividend has subsided and user growth has slowed further, industry profits are still considerable.


Financing Heat

With the fierceness of online games, capital continues to flood in online game live broadcast industry. And the major live platforms have received a lot of financing support, especially Douyu and Huya. In the formation of the industry competition pattern, the support of capital has greatly promoted the development of the competitiveness of the live platforms.

On May 11, Huya Live was officially listed on the New York Stock Exchange. And on June 29, it signed a strategic agreement with Tencent Games.


A Highly Concentrated Industry

With the continuous integration of capital, China's online game live broadcast industry is developing at a high speed, and the industry competition is becoming increasingly fierce.

Competitive live platforms tend to spend many millions and many efforts scrabbling around with headhunters trying to find top anchors, and the market gradually forms a head effect. Attracted by top anchors, the audience leans toward the head platforms, such as Douyu and Huya to watch online game lives. Market concentration has continued to rise and user activity has increased.


A Complete Industry Chain

In the industry chain of the online game live broadcast industry, the live platform is located at the core position, with the users and traffic demand merchants being the downstream; the upstream mainly include anchors, copyright parties, and software and hardware facilities.

If runs well, the live platform would be able to earn the most. Huya released its first quarter financial report for the 2018 fiscal year. The report showed that Huya’s total net revenue for the first quarter was 843.6 million yuan, with a year-on-year increase of 111.5%; and the net profit was 31.4 million yuan. But the leading players like this are very few.

Beyond Consulting, Future is Feasible

We provide more professional and intelligent market reports to complement your business decisions.