Live-streaming is when an individual transmits or receives live video and audio coverage of an event over the Internet. It’s a phenomenon that’s creating a new online culture in China and it’s growing at a colossal rate. Half of China’s 700 million Internet users have tried live- streaming apps and the industry is predicted to be worth USD $14BN by 2019. Both industries and individuals are now embracing it to digitally engage on an entirely new level.
Individuals have turned live-streaming into a reliable revenue stream by using a new monetization method where viewers send them “digital gifts” that can be exchanged for real money. Unlike traditional monetization methods, such as advertising and subscriptions, digitalgifts are a novel and fun way to interact with a streamer. As a result, they are highly popular, and the top live-streaming stars earn a reported $100,000 per month.
There are many ways for businesses to capitalize on live- streaming and, in China, live-streaming is regularly used as a tool within the e-commerce industry to increase brand engagement and drive sales. For example, a paid influencer could demonstrate a product in a live environment to showcase its quality and provenance.
Members of the public also live-stream reviews and demos of products or provide tips and tutorials. This is a powerful tool in the Chinese market where social engagement and shopping behavior are so intertwined that a friend’s recommendation can be the most crucial factor when buying online.