A woman and a man in a commercial live streaming event help sell essentials in Hangzhou, Zhejiang province. (Photo/China Daily)
"With a smartphone in hand, they (viewers) can watch whatever suits their mood, wherever they want. And if they feel they are having a good time (watching such content), they can spend a small amount of money to send virtual gifts to the stream's host and see their own names shoot across the screen like a bullet. That brings a lot of satisfaction (to such viewers)," he said.
What's more, the crass content has produced so-called grassroots stars who boast loyal armies of fans. Such stars make some real money. The apps pay them handsomely for their services. And, depending on their popularity, brand endorsements and paid appearances at events are conceivable.
"Hosts who are good at engaging viewers in an online conversation usually receive a bigger paycheck," said Feng.
The interactive nature of the apps is their biggest strength, said Feng. On his platform, the top-earning hosts make tens of millions of yuan a year by simply sweeping the viewers off their feet. Most of them do that by pandering to the demands of their viewers.
Such demands could be for a song, a smile or some honest answers. Smart hosts with a quick presence of mind thank gift-giving viewers in real time, making the latter feel good, as if they were the center of attention.
For their part, apps monetize eyeballs through advertising revenue. Valued at 3 billion yuan ($450 million) already, Inke is one of the more than 200 live streaming apps that have mushroomed in China in the past year.
A growing number of companies see huge potential in the country's mobile-video market.
At last count, about 106 live stream apps have secured funding of 2.37 billion yuan in 2015. Venture capital firms are chasing them. Such apps have become a necessity for China's top-tier internet companies.
