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Tencent reportedly in talks with Sequoia-backed game streaming service Douyu TV

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The video and game streaming space in China is starting to attract a fair bit of attention as of late.

Earlier this month, we reported on three pretty significant developments — firstly, Chinese ecommerce giant Alibaba

With all this happening in just the past two weeks, Thursday’s news via The Wall Street Journal that Tencent is close to completing an investment in homegrown game streaming service Douyu TV is — again — interesting.

The size of the investment appears to remain unclear at this stage.

Eighteen-month-old Douyu TV is partly notable for being backed by Sequoia Capital China, so it’s clearly not a company that is likely to vanish over night, and is likely gaining good traction in its home market.

There are now more than 446 million gamers in China, with game revenue expected to reach $22.2 billion this year, according to data from research firm Newzoo that was cited by WSJ. Other estimates I’ve come across in the past suggest that over half of these gamers watch live-streamed gaming content.

That’s a heck of a big opportunity.

In general, I’d say this is a very interesting space in China to keep an eye on in the near-term — and is certainly one that Western rivals like Twitch and YouTube ought to keep abreast of, as well.

Tencent did not reply to our request for comment at the time of publication.

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Source:: Tencent reportedly in talks with Sequoia-backed game streaming service Douyu TV

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