Streaming becomes a torrent

19 April 2017 - 09:18 By SHU ZHANG and MATTHEW MILLER
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Image: Gallo Images/iStockphoto

Jing Qi, a presenter on the live-streaming platform Huajiao, underwent cosmetic surgery in March to improve her chances of becoming an internet celebrity.

After five hours of rhinoplasty and facial fat injections, the 27-year-old said she felt "even worse than dead". But it was worth it.

Jing is among tens of thousands hoping to find online stardom as an anchor on the video streaming phenomenon sweeping China's media.

The internet sector barely existed in China three years ago but last year produced revenues of more than $4.3-billion and, according to an estimate by investment bank China Renaissance Securities, is set to more than triple that by 2020. That puts it on track to overtake cinema box office receipts in a few years' time.

"I want more people to watch me, to spend Huajiao coins on me," Jing explained, referring to the virtual gifts her online followers buy that she can later redeem in part for cash. "In the end, I'll be able to marry a tall, handsome and rich man."

The rapid growth has attracted a rush of investment led by China's tech heavyweights, Tencent, Alibaba and Baidu. They hope live streaming can boost existing services in e-commerce, social networking and gaming.

Tencent, the country's biggest online gaming and social networking company, is backing a slew of streaming and interactive entertainment firms. Alibaba's Taobao marketplace launched a live-streaming platform early last year, allowing sellers to promote products directly to viewers in real time.

The lure is some 344 million Chinese "netizens" who were watching live streaming sites in December. And that is only about 47% of all Chinese internet users. There are about 150 live streaming platforms, most producing entertainment shows.

The importance of live streaming in smaller cities is greater than elsewhere. Access to the internet via a mobile phone is often the only gateway to shopping and entertainment, said Karen Chan, an equities analyst at Jefferies Hong Kong.

Live streaming has also bolstered the growth of agencies looking to find the next live-streaming star, consumer loans, and even cosmetic surgery.

Deng Jian, chairman of Three Minute TV, an agency that provides 1000 trained anchors to more than three dozen platforms, said his business operates a "militarised" production machine to feed the live-streaming industry. Dozens of Deng's female anchors work each day around the clock in three shifts. Each anchor sits in a small booth, decorated to appear like a girl's bedroom, facing a computer.

They sing and flirt with fans, encouraging them to buy virtual gifts like a rose, sports car or villa. The cash for the gifts is split by the platforms, agencies and the anchor.

Three Minute TV also arranges cosmetic surgery for its anchors, arranges loans for the surgery, photographs and markets the anchors and helps them find acting opportunities, Deng said.

In July, China's culture ministry shut down 4313 online show rooms, firing or punishing more than 18000 anchors. Twelve platforms were ordered to make changes after offering illicit content that "promotes obscenity, violence, abets crime and damages social morality".

Still, it hasn't faded the hopes of young Chinese who want to become internet stars.

Jin Xing, the founder of cosmetic surgery app Soyoung, estimates 95% of anchors have undergone cosmetic surgery to improve their looks. The app connects cosmetic surgery centres with prospective clients.

"Live streaming cannot be faked and cosmetic surgery increases the chance of getting a virtual gift," said Jin, who reckons about a fifth of Soyoung customers come from the live streaming universe.

Jing, the Huajiao anchor, said her goal was to become famous enough as a streaming anchor to open her own online e-commerce store. "Using 72 hours of pain in exchange for three to five years of good looks is totally worthwhile," she said. - Reuters

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