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There has been questions around livestreaming platforms in China faking their figures, which explain why I decide to write a short piece of article to sum my thoughts. Why? Muddy Waters commented on JOYY falsifying their operational metrics like monthly active user numbers, etc with the corresponding response from JOYY that Muddy Waters do not understand the industry at all.
Before I start, let me bring your attention to Weiya, the top livestreamer in China who was recently in news for tax evasion. I am not here to comment on whether is it right to fine her since I never agree with tax evasion. But what I want to comment on is Weiya is able to sell rocket, sell alot of things because of the high traffic 流量 that she can command which at the same time draws in high gross merchandise value of goods sold. This ultimately means that a successful livestreamer can have many income sources besides earning gifts from their followers. In fact, if a leading influencer can bring in sales, i am not surprised at the high level of commission she/ he can draw for the GMV of goods that he/ she sells.
So back to the figures on the various platforms like Kuaishou Tech, Douyin (belonging to Btyedance), Huya, Douyu, etc. Are there truth in their MAUs? I am not here to debate this point but what I want to say is the discussion on Multi channel networks ("MCUs") gifting certain livestreamers on these platforms. Why do they want to do this? Its logical that they want to draw attention to certain livestreamers / influencers on such platforms that have high MAUs. To me, this seems like an advertising avenue for the MCUs to "advertise" their influencers who help their MCUs to market the goods for third party companies. With the gifting, certain traffic as well as the platform algorithm will draw people on the platform to be aware of such influencers. Once the influencers are able to amass a decent following via the act of gifting by the MCUs (this is one of their few intentions which I believe), then the influencer could attempt to broker a deal with third party, said for instance an apparel conglomerate in China to help to sell their goods via livestreaming.
Thats my thoughts as in why MCUs would use platforms like Kuaishou Tech, JOYY, Huya, etc to "advertise" their influencers.
As always, this should not be construed as any investment or trading advice.
Some of the selected youtube videos on my youtube channel:-
$JOYY Inc.(YY)$$KUAISHOU-W(01024)$$Bilibili Inc.(BILI)$$BILIBILI-SW(09626)$$Huya Inc.(HUYA)$$DouYu(DOYU)$
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