Chinese online content platforms including Tencent Music (1698.HK) and NetEase’s Cloud Music (9899.HK) have removed live streaming features that analysts say could be used for illegal gambling, at a hefty cost to their quarterly revenues.
Analysts say online content platforms pulled the plug on features such as virtual lucky draws after the government in June started cracking down on live streaming, as part of a wider clampdown on online gambling.
While the platforms say they ban gambling, analysts say the extremely popular lucky draws are often manipulated by live streamers colluding with viewers to share the prize.
These features have increased the popularity of live streaming, a market which was worth around 152 billion yuan ($21 billion) in 2022, research firm Analysys said.
