China's Twitch pays millions of dollars to keep its top streamer exclusive
Liu "PDD" Mou is worth millions of dollars to Douyu as it tries to fend off game live streaming competitor Huya in an industry projected to grow to $3 billion
Cameras flashed and fans screamed, as Liu Mou stepped into the spotlight on a sweltering summer evening. In the industrial heartland city of Wuhan, tens of thousands of spectators jam-packed the waterside strip that bore witness to Chairman Mao Zedong’s iconic swims across the Yangtze river half a century ago. In unison, the mob roared “hubby” -- the moniker jokingly assigned to many male celebrities in China -- and Liu, 28, waved back with a smirk. The crowd was mostly men.
Their adulation was a testament to Liu’s status -- not as marriage material -- but as one of the brightest stars among China’s gamers. Liu and his fans were on the waterfront for a carnival celebrating the industry, hosted by one of China’s largest game-streaming companies, Douyu. Liu is its biggest celebrity. Every day, he spends at least four hours playing League of Legends and other popular titles, streamed to more than 10 million fans. Here, at the carnival, they were getting a chance to see him in person.
How Douyu won the live-streaming war to become China’s Twitch
For two nights, out of his own pocket, Liu bought dinner for 3,000 of his followers at two nearby restaurants. As he shuttled between tables of noodles and crayfish for selfies, groupies swarmed to pat his rotund belly, and he laughed out loud. It was an endeavor to thank his fans. “I had a hard time taking care of everyone,” he said.
The three-day festival raked in about 20 million yuan ($2.9 million) in ticket sales, and it’s all part of the race to create China’s equivalent of Amazon’s Twitch, only bigger and potentially more profitable. Douyu is counting on people like Liu to generate revenue via virtual gifts bestowed by fans, potentially showing tech giants like Facebook Inc. and Amazon.com Inc. a new way to monetize game-streaming beyond advertisement and sponsorship. Liu and Douyu’s fate are also intertwined by the same challenge: to prove their spectacular rise is more than a fad but can withstand competition, cash burn and government censorship. Analysts predict the industry could grow to be a $3 billion business in China.
“I choose Douyu because the platform has accumulated a huge base of League of Legends fans,” said Liu, better known by his moniker PDD. “So far our success is built upon each other, and we complement each other.”
