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Chinese regulators seek cap on tips given by internet users to live-streaming content creators

  • China’s new guidelines for internet platforms aim to limit how much users can tip live-streaming content creators
  • The guidelines also require platform operators to establish a ‘classification and rating’ system for these content providers

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Live-streaming content providers may see their income squeezed, as Chinese regulators seek to limit the amount of tips internet users can send to them. Photo: Bloomberg

Internet platforms will need to put a “reasonable” cap on the amount of digital monetary tips that their users send to live-streaming content providers, according to new guidelines issued on Tuesday, amid government efforts to clean up China’s online economy.

Tips paid to live-streaming content creators provide a source of revenue for the country’s internet platforms, which take a cut from the amount sent by their users to these online hosts.

In China’s booming live-streaming sector, a top streamer can make millions of yuan a year, mostly via virtual-gift tipping from fans.

The guidelines, jointly issued by internet watchdog the Cyberspace Administration of China and six other government agencies, did not provide a specific monetary limit for tipping.

Sales of virtual gifts to consumers, who then gift these as tips to live-streamers they admire, expanded 16-fold between 2015 and 2019 to US$16.8 billion. Photo: Bloomberg
Sales of virtual gifts to consumers, who then gift these as tips to live-streamers they admire, expanded 16-fold between 2015 and 2019 to US$16.8 billion. Photo: Bloomberg

The new guidelines also directed internet platforms to establish a “classification and rating” system for live-streamers to better manage these content providers. When necessary, the platform operators can also introduce a “cool-off period” for users who typically make generous tips.

Xinmei Shen joined the Post in 2017 and is a technology reporter. She covers content, entertainment, social media and internet culture. Previously, she was with the Post’s tech news site, Abacus. Before that, she was a reporting intern at The Information whilst studying at the University of Hong Kong.
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