China has seen explosive growth in its online live-streaming sector with millions across the country broadcasting their daily lives in an attempt to win over fans or make a fortune. But huge business opportunities have also opened up a hornet's nest of regulatory challenges.
At a nondescript office block in Wuhan, Hubei Province, dozens of young girls are live-streaming. Each one sits in a small booth, decorated to appear like a girl's bedroom. Each one faces a computer and microphone.
They talk, sing and flirt with fans who are encouraged to buy them virtual gifts. The more gifts they receive, the more money they earn.
Liu Yong works for the largest talent agency in Wuhan. He said, "There are more than 900 hosts working in our company. They work around the clock in shifts. Today it's harder to earn money by performing sexually suggestive content, because major platforms forbid it."
There are strict rules in place to broadcast on China's major live-streaming platforms.
Douyu, one of the country's first platforms, has hired more than 500 staff to monitor online content 24-hours a day. Talent who indulge in inappropriate behavior will be given an official warning or banned from broadcasting completely.
The company also invests in big data and artificial intelligence technologies, such as image and voice recognition to crack down on illegal and inappropriate content.
Zhang Wenming, CEO of Douyu said, "On the one hand, we try to eliminate illegal content from our platform. We have introduced a penalty system to punish offenders. On the other, we created special pages for those who want to share positive content, which is our focus in the future. Hopefully we can help build a positive and healthy online environment."
Liao Kaixiong, director of the Big Data Project of Internet Live Show Marketwatch explained that it's normal that there is chaos at the beginning of any emerging business. But now many platforms realize that they won't survive long if they don't stamp out obscene content. And the industry won't have sustainable development if the environment is not clean and healthy. That's why we see the trend improving.
This month, twelve people were arrested on suspicion of using a live-streaming mobile app to spread pornography.
China's live-streaming industry saw huge gains last year, as young people were constantly looking for edgier content on their mobile phones. But as strategies to clean up the internet in China intensify, those hoping they can make a quick buck from broadcasting obscene content, might need to re-schedule their business plan.
