The livestreaming boom in Asia is creating a new kind of celebrity in a multi-billion-dollar business, with millions of viewers willing to tune in for hours every day.
While live video streaming has certainly had a huge impact in the West, what many haven't noticed is that this popular trend has captured the Asian market just as strongly, or even more so. In China alone, the livestreaming industry was worth over US$3 billion in 2016, an increase of 180% from the previous year, according to Forbes magazine. As many as half of China's 700 million internet users have tried sharing their life stories on livestreaming applications.
Many factors have been working together to support the growth of this lucrative industry in Asia. Among them is a huge youth population that outspends the rest of the world on in-app purchases. According to the United Nations, 717 million people aged 15-24 live in the Asia Pacific region, representing 60% of the world's youth population. They are the number one customers of all social media apps.
The use of live online video to promote products, by individual sellers and giant consumer goods companies alike, has mushroomed, and in Asia these sellers have found a very enthusiastic market.
According to AppsFlyer, a global mobile market attribution analytics company, Asian users spend 40% more money on in-app purchases than their peers in the rest of the world: a monthly average of $0.70 per user per app, compared with a global average of $0.50. Europeans spend just $0.26, and Latin Americans spend the least at $0.16.
The financial impact can be seen not only in livestreaming but also across the broader online community. A huge number of Asians are now making a living from selling emoji and Line stickers, virtual gifts and many other items.
CELEBRITY OUT OF NOWHERE
Like many online phenomena, live video streaming became a force in the market after the giants of the industry sat up and took notice. The pioneer in the medium was Meerkat, which made its debut in 2015 with a feature that allowed users to post live video to Twitter. A nervous Twitter quickly cut off Meerkat's access and then acquired the streaming service Periscope to fold into its own services, effectively dooming Meerkat. Facebook Live followed soon after.
Today, numerous livestreaming apps have become successful in Asia. The key to success for an app is to have unique characteristics that allow it to capture a large user base and keep people coming back to use more services.
With more than 200 livestreaming apps available in China, it is difficult to say which one is the most popular as different categories and degrees of functionality exist. For example, Ingkee was developed mainly to focus on livestreaming. Other popular apps such as Momo and Meipai added a livestreaming function later on to give their users a new feature. Some online real-time gaming platforms, such as Douyu and YY, have expanded to other content and now offer livestreaming functions in their apps.
However, one common characteristic that all these apps share is that they offer an ideal medium for anyone with a distinctive interest or enthusiasm to become a star overnight. Some young people are even willing to undergo cosmetic surgery or intensive training in broadcasting techniques in the hope of becoming celebrities in the livestreaming world.
Can you imagine a life in which you can just broadcast everything you do -- up to a point -- and people will pay to watch? That life is now possible for people who are not pop stars or Kardashians. Those who can create enough buzz on social media can earn more than $100 an hour talking to strangers online.
Livestreaming apps allow viewers to interact with streamers via pop-up texts, and many have integrated a feature that motivates people to stream more as they can generate profit from the activity. For instance, if viewers enjoy what they see, they can tip the streamers with virtual gifts that they buy from the apps. The streamers can then trade these virtual tokens for cash.
People can become internet stars in many ways -- singing, dancing, gaming, travelling, cooking, acting, DJing, offering makeup tips or coaching on specific topics. Many are showered with virtual presents by their followers, and once they get noticed, some have been approached for acting roles in TV series and commercials.
In Thailand, sometimes known as the Kingdom of Facebook for its 47 million users, Facebook Live has become the medium of choice for many. Especially among online merchants, the live video service has proved to be an excellent tool to increase sales. Live shopping is now seen as entertainment for the smartphone generation.
A growing number of small businesses are using the potential of live video to show off and sell products, take bids and communicate with buyers via live chats. Some hire good-looking presenters to explain their wares and play games with customers to capture wider attention.
LOCALISATION AND INNOVATION
While hundreds of livestream platforms are jumping into the market, only a handful manage to survive and keep viewers coming back. In order to be a top-earning livestreaming app in Asia, local content is essential. Singapore-based Bigo Live is the regional leader with about 150 million subscribers and 45 million monthly active users. Its key success factor is the ability to create content suitable for different countries.
"It is imperative that we pay great attention to ensure that the platform is extremely versatile and can be easily localised to cater to different markets while allowing users to share their moments and stay connected. This is the key to making the platform a success," said Cherylene See, regional marketing manager for Bigo Live.
Bigo dominates markets in Southeast Asia such as Indonesia, Malaysia, Thailand and Vietnam. Many more newly registered users are coming from new markets such as Russia, the Middle East, India, South America, Australia and some other locations.
Apart from the ability to create local content, there are a couple of other factors that successful livestreaming apps need to keep in mind. App Annie, an app analytics and market data company, has released a report on best practices based on case studies on how to be a top-earning livestreaming app in Asia. For a start, it says, the app should optimise screen space and create a better user interface.
"A showroom's landscape orientation in streaming apps should create a theatre-like experience," said the report. "Viewers are virtual avatars, possibly allowing them to feel more at ease while engaging with the performer."
And while streaming apps must keep abreast of new technology and features, they must also make use of technological innovations wisely.
"Technology such as augmented reality (AR) and facial recognition can enhance the viewing experience," the report pointed out. "Some apps also offer sound equalisers to allow streamers to fine-tune their voices as they perform songs live."
The livestreaming industry will no doubt continue to flourish on many fronts as the technology allows just almost anybody to broadcast their stories live regardless of their location. It is up to them to ensure that they know how to take advantage of this appealing medium in a positive way.
