Not long ago, one of the giants of the livestream platform in Vietnam suddenly banned streamers from using donations outside the platform. That is considered a sign of instability because this has directly affected the income of many streamers. Of course, everything doesn’t happen by accident, it all has a direct cause.
This is said to be so that this livestream platform is trying to optimize its revenue when the parent company is no longer “swinging hands” as before. Specifically, Tencent’s Huya platform (N**o’s original platform) itself is facing a lot of regulations and controls, such as limiting the game content that can be Livestreamed, limiting the time of Livestream and even limit viewers under 18 years old.
These extremely strict regulations immediately made Tencent, which has had a large deal in the Livestream segment delayed indefinitely, to decide to withdraw a large amount of investment money from N**o TV. This caused N**o TV’s operating scale to shrink and since then it had to close in 14 different markets, including Brazil and Thailand.
It is entirely possible that this livestream platform can create a chain of “tragedy” dominoes. The ban on using external donations has created a wave of reactions and frustrations in the hearts of streamers who have been trying to make a name for the platform. The fact that this platform has to withdraw from major markets, is said to be because Tencent can no longer afford to continue to maintain and if it does not try to optimize its revenue in the Vietnamese market, it is very likely, N* *o TV will also disappear in the very near future.
This is a consequence of Tencent’s “overstretched hand” on a series of large and small projects. When seeing the strong development of viewing culture in general and Livestream in particular, Tencent has invested extremely heavily in this market. The promotion of Huya system (the parent company of N**o TV), and at the same time trying to acquire Bilibili are strong steps forward in this ambition.
But if a football field has both sides with the same player, is the game still fair, especially when Tencent also owns Riot and League of Legends, allowing them to have the right to designate the world’s top Esports tournament. Where will it be broadcast? It is not far away that in 2020, Bilibili himself was “lucky” to have the rights to broadcast League of Legends after Tencent became a major shareholder of this platform.
Not stopping there, Tencent also continued to invest and stand in the executive ranks of Douyu, making its name present in all three of China’s leading Livestream platforms. However, everything is still not finished because in 2021, Tencent continues to promote the merger of Huya and Douyu into one. If successful, Tencent will officially become an emperor without a throne in the Livestream village. The estimated value of this deal is about 6 billion USD, not only in the Livestream segment but also in the technology industry in general.
But until Tencent was “whispered” because Huya and Douyu with market shares in the Livestream segment of 40% and 30% respectively, are currently holding the No. 1 and No. 2 positions in China. If merged, the total market share would be 70%, allowing Tencent to control almost the entire market and violate antitrust laws. This forced the regulator to issue a ban on Tencent and temporarily made this giant not realize its ambition. In the end, Tencent may be forced to sacrifice N**o TV in a series of markets, but in the Vietnamese market it is also very likely to happen in the near future.