China’s Live-Streaming Space Is Facing A Crackdown

The live-streaming space that has enabled apps like Momo to generate such stratospheric revenue growth is facing a crackdown by Chinese authorities.

The Ministry of Culture recently launched an inspection into the live video space targeting “vulgarity, obscenity and wrong life values”, according to a new announcement by the ministry quoted in the South China Morning Post.

And Momo is apparently on the list of companies set to be examined in the Ministry of Culture’s first round of inspections.

Speaking to the South China Morning Post, Zhongtai Securities analyst Wang Xian said: “The regulations on live streamers have obviously tightened up.

“Both the MOC and SARFT have taken action, with new rules containing lots of restrictions on streaming sites, streamers themselves, the content they provide, and even the way they perform. We expect the streaming industry to face a shake-up.”

Live-streaming helped Momo’s revenues rise by 524% in Q4 of 2016, after a quite incredible year of growth.

Read more about its latest results here.