Opinion: 3 ways startups can take advantage of the live streaming market

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Social live streaming in China has gone mainstream since last year.

Roughly 46 percent of China’s internet population used a live streaming app in June 2016. CNBC reported that live streaming revenues in the country between June and August 2016 reached US$246 million, according to China Tech Insights. Credit Suisse also believes that the market will be worth US$5 billion this year, making it nearly as big as the China’s movie or mobile gaming market.

You may be wondering how social live streaming platforms even make money. Well, one of the most popular ways is virtual gifting, which viewers use to appreciate the broadcasters’ content. Virtual gifts range from virtual flowers (US$1.50) to virtual sports cars (US$45). The platforms take a cut of the transaction and the rest goes to the broadcaster.

Live streaming has certainly become a way for many youngsters in China to make easy pocket money. And for the audience, it has become a new form of entertainment that is interactive and more real.

See also: Bigo competitor BeLive kicks off in Singapore after $1.5m seed round

Bigo Live is a rising social live streaming star in Southeast Asia, with presence in Singapore, Indonesia, Vietnam, Thailand, Malaysia, Cambodia, and Laos. But despite its cute and innocent-looking logo, the company has faced controversies lately as some users use it to produce questionable content.

It pains me to see this happening as social live streaming is a great and innovative business model. It is a clever way to monetize virtual social interactions using existing technology. It also satisfies people’s craving for interesting and original content.

There is certainly a lot of serious business potential beyond the sleazy scenes. Below are some which I think fit well into the Southeast Asian landscape.

1. Virtual travel

A lot of people like to travel and discover new places but not everyone can afford to actually go on tours. The solution is virtual travel. Here, viewers can request for destinations that they want the broadcasters to visit. The live streamer can pick the most requested destination and broadcast his or her travel experience in that place.

This is a much richer experience for viewers compared with traditional travel shows on TV. In virtual travel, people can interact with the broadcasters and even influence their itinerary.

Photo credit: Ale Hidalgo.

Broadcasters can monetize their streams by requiring an upfront virtual gift as a subscription fee. This can also cover their travel expenses.

2. Cross-border ecommerce

3. Brand-sponsored content