China’s game streaming market will generate $4.5 billion in 2020, up from $3.11 billion in 2019. The space has been on an uptrend. From $1.21 billion in 2017, it is projected to reach $7.44 billion in 2022.
Based on a study made by Newzoo, China will be the top gaming market globally in 2020 with $40.854 billion in revenue. The US will be second with $36.921 billion.
Huya and DouYu Merger to Create $10 Billion Game Streaming Behemoth
iResearch data revealed that the top two streaming services in China soared remarkably. Huya.com saw its revenue shoot up by 79.6% year-over-year (YoY) as DouYu surged by 99.3% YoY.
During Q2 2020, Huya had an average of 168.5 million monthly active users (MAUs). DouYu was close behind with 165.3 million MAUs. Huya made $2.7 billion in revenue in that quarter, up by 34.2% YoY according to Market Beat. On the other hand, DouYu made $2.51 billion, posting a 34% increase YoY.
Tencent mediated a deal that will see the two merge to create an industry giant worth nearly $10 billion. The agreement is set to take effect in H1 2021 and will see the two enjoy a combined user base of over 300 million.
China’s game streaming market has about 340 million users. As such, the new entity will have control over 80% of the market. Tencent will have a 67.5% share in the new company as it currently holds a 38% stake in DouYu and is the majority shareholder in Huya. According to Macro Trends, Tencent is worth $691.16 billion as of October 21, 2020. It owns some of the most lucrative gaming titles including PUBG Mobile, Call of Duty and Honor of Kings among others.