The Chinese Animation Gold Rush

With a huge potential box office rewards and no established domestic studio brands dominating the playing field, the enormous opportunity for creators of animated movies has seen a collective mobilization across the media ecosystem towards the genre.

For some, the catalyst was the enormous success of 2015’s “Monkey King: Hero Returns”, which earned 956 million yuan ($139m) at the box office and shattered the previous record for a full CG animation.

40150de413911abMonkey King: Hero Returns, produced by October Annimation Studio

Others, like DreamWorks, saw the market potential years ago.  In 2012 the company struck a $350m (2.4bn yuan) joint venture deal with three Chinese investment companies to form a studio on the ground in China, Oriental DreamWorks, which could circumvent the foreign film quota.

The government has played its part, offering grants and incentives for companies to make animation, eager to promote China’s creative evolution and production of soft power products that it can ultimately wield on the world stage.  That initiative has included facilitating international coproduction treaties, enabling substantial moviemaking partnerships, like those between China and companies in New Zealand and the UK.

Oriental DreamWorksOriental DreamWorks

Meanwhile, as China transitions from outsourcing destination to original creator, former service companies are turning to original content creation, like China’s leading visual effects provider, Base FX, and veteran CG studio Original Force, both of whom have major animated features in the works.

Established live action studios are getting in on the act too.  In October 2015, Beijing Enlight Media formed ‘Color Room’, an animation and live action division, to invest, incubate IP, and manage productions, while Huayi Brothers has also established an animation arm, Wink, to develop four animation features every year.

1Kung Fu Panda 3, co-produced by Oriental DreamWorks and DreamWorks

Companies with interests across multiple industries are adding animation to their portfolios.  Internet behemoth Tencent created film production arm, Tencent Pictures, which is developing and producing a diverse slate of 21 film and TV projects, while in 2015, Alpha, a giant Guangdong toy and clothing conglomerate, announced a 900 million yuan ($141 million) acquisition of original internet comic platform U17.com, with a view to converting the IP into movies.

Tough Terrain

The ground in China may be fertile, but the climate is uncertain. Fewer tickets are being subsidised than they were in 2015, sales are growing more slowly than expected and the Chinese box office won’t, as many had predicted, become the world’s largest in 2017.  Moreover, competition is fierce. The growing number of new Chinese films will compete with each other and a relentless onslaught of offerings from the established global big guns that make it in to China as part of the import quota.

1-20Japanese Animation: Your Name

There is no established Chinese animated entertainment brand, no household name animation directors or studios and very few known properties. In most cases, Chinese studios must develop IP from scratch, guessing what will work, or buy the rights to book, game or toy properties with an existing following and try to convert them in to compelling motion pictures. However, good animation writers are hard to come by, with the best talent historically drawn to the relatively better prospects in live action.

Moreover, the tastes of the rapidly morphing audience are as unpredictable as ever. The lazy assumption about unsophisticated masses that eat up Chinese mythology and spectacular visual effects is outdated. Audiences and reviewers are fiercely critical of sub par stories, recently prompting Party mouthpiece People’s Daily to publish an editorial piece slamming ‘vicious and irresponsible’ critics.

p2217523557One Hundred Thousand Bad Jokes, produced by YouYaoQi

The hope is that creators will be emboldened by the successes of ‘alternative’ films like the auteur driven “Big Fish & Begonia”, adult fare like “100,000 Bad Jokes” and Japanese indie efforts like “Your Name”, all of which demonstrate that there is a significant market for edgier content.

The unpredictability may partly explain why Chinese animation studios aren’t placing all their bets on the domestic audience. Whether for their first film release or a later offering, almost all studios say the eventual target is the global market.

Big Fish & Begonia, produced by Biantian Media

Joe Aguilar, CEO at Wink, says that for an animation studio in China to succeed, there are two key considerations.  The first is China’s ‘content wealth.’  “Chinese culture is more popular in the global market, and can produce infinite original stories with Chinese elements,” he says.  That may be true, but no Chinese film, animated or otherwise, has yet cracked the major US or European markets. One explanation may be a fundamental difference in storytelling sensibility between the East and the West.  Many senior studio executives have pointed to a looser Chinese story structure that is inaccessible to the West.

Western tastes might evolve with greater exposure to Chinese content, but that process will take years. In the meantime, Aguilar’s second point – that movies need to “emphasize international ways of expression, which make the movies globally more acceptable”- is the reason almost all studios with serious designs on the global market have established development studios in L.A. and/or installed Hollywood experience in executive positions.

The First Batch

This year will see the first serious runners among the multiple newcomers to the Chinese animated features race.

“Duck Duck Goose”, the first release from Original Force, is the pick of the bunch.  Led by a triumvirate boasting decades of experience in both Hollywood and China, the studio has seemingly all the right elements to create something of real quality for its debut feature.

MV5BOTU4ODYxMjItNWNhZS00ZDIzLWFjMWUtMzQ3MjU1ODY1MDEzXkEyXkFqcGdeQXVyMjExMzEyNTM@._V1_Duck Duck Goose, produced by Original Force

Then there is Light Chaser Animation, the Beijing studio founded by Tudou founder and billionaire, Gary Wang.  Wang raised eyebrows by assuming writing and directing duties for the studio’s debut feature in 2015, despite having never previously written or directed an animated film.  He reprises the role for this year’s follow up, “Tea Pets”.

Tea Pets, produced by Light Chaser Animation

Guangzhou’s Yi Animation will release its first original movie, “Kung Food”, the feature film adaptation of the studio’s TV series, “Super Bao”, a stereoscopic 3D movie about living pieces of food uniting to prevent bland flavours from conquering the world. Coproduced by 21st Century Fox, the “Kung Food” is the only IP among this year’s contenders to have any existing fan base in China.

Kung Food, produced by Yi Animation

Finally, “Watch The Skies” is the first feature from DeZerlin Media, a creative content boutique that generates IP for animated and live-action features and series, games and print. It adopts a Western-style studio model, creating the IP and managing the property, but outsourcing the animation locally.

It is safe to assume the new crop of Chinese animation films will bring better character performance and production values.  Local audience will no longer accept substandard quality. The most compelling questions circulate around story. The risks might suggest studios will err on the side of caution for their debuts.  Will we thus see Hollywood films with Chinese elements – like the Kung Fu Panda franchise – or can a distinctly Chinese tone begin to shine through?  Will a director be afforded the time and trust to realize a vision, as Tian did for “Monkey King” or Liang Xuan and Zhang Chun did for “Big Fish & Begonias”?  This year, we’ll start to have some of those questions answered.

Where Does China’s Virtual Reality Industry Stand in 2017?

The Chinese VR industry is increasingly making headlines, both for Bloomberg’s much quoted estimate that it will be worth $8.5bn by 2020, and because it has been the first to monetize VR in any meaningful way.  Surveys show that Chinese consumers are willing to pay more than $15 per month for good content. The problem, and the opportunity, is that currently, there is very little of it.

Kevin Geiger is here to help.  The former Disney CG artist first landed in Beijing in 2008 to produce projects and teach, going on to serve as Disney China’s Vice President and Head of Creative.  A little over a year ago he founded the International Animation & Virtual Reality Research Center (iAVRrc), a virtual and augmented reality content development studio operated by China’s leading film school, the Beijing Film Academy (BFA).  Between the center, his content production company (Magic Dumpling), a regular LinkedIn presence, AWN.com blog and his own online journal, the Ohioan has become one of the more prominent western voices in Chinese animation and virtual reality.

We joined Geiger to get his take on the domestic industry at the end of 2016.

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PIG: In traditional media, China is generally seen to be a step back from the rest of the world.  That appears to have changed with VR.  Would you agree? 

Kevin Geiger:  In many areas of VR, China is ahead of the game.  In terms of the energy level, China ranks number one.  In terms of just the pervasive amount of hardware and software development, number one.  On quality of the locally developed hardware and software, I would not say number one. Catching up, but still back a step from the rest of the world.  There are far more experience zones in China than there are in the U.S. Even though they may be lower grade, they’re very pervasive.  There’s not nearly as much content being developed here as elsewhere for VR, and not nearly of the quality.  It feels like every VR content startup in the West is drawing on Pixar, Sony, Disney or Dreamworks for people to jump into the fray.  China doesn’t really have that bench depth, and with the investment weariness in content, people are waiting to see who else is doing what before they jump in. And, frankly, there are a lot of restrictions.  If you’re developing VR games, you fall into regulatory restrictions where have a one to four month regulatory approval period.  If you’re a startup trying to get a game onto the shelf so you can recoup your investment, that can kill you.  And of course, the content itself is tempered.  Censorship does have a chilling effect on the entire ecosystem of creative development and production, and that’s not necessarily in the service of the business, the industry, or even, ultimately, the culture.

image2iAVRrc Project: Story Forest

PIG:  Why is investment in content lagging behind hardware?

KG: Investors understand that content is the important thing.  They know it, but they really don’t have the stomach for it.  It’s more secure – but I think a false security – to invest in a widget, a piece of hardware or software, as opposed to an IP.  If you don’t get the returns you want and you’ve invested in something physical, you can sell it off and recoup something.  With IP, it’s not always the case.  I was at an event yesterday where investors were talking about their disenchantment with content, saying, “We’re pulling back from investing in content. We’re going to focus on hardware and hope the content that’s developed uses that hardware.”  I’m biased, because I’m a content guy, but I was a little surprised to hear that stated so bluntly.  It seemed a regressive approach to me, but I respect their points of view.

image3iAVRrc Project: Hutong Hunt

PIG: Do you think that attitude is widespread across China’s virtual reality industry?

KG:  I hope not.  Investors in general run the range from informed to uninformed, and from bold to risk averse.  China has enough people in every area of the ecosystem that even if 200 people say they’re not investing in content anymore, there are thousands more who are. I don’t think it’s necessarily epidemic and certainly Alvin Wang (China Regional President, HTC Vive) said he doesn’t see a chilling effect.  From his point of view, even though investors are asking more questions, he sees a widespread enthusiasm for the entire chain: hardware, software content distribution.

PIG: Which China-created VR experiences have impressed you?

KG:  I was impressed by Noitom’s Project Alice here in Beijing – this mixed reality experience of physically holding a bar stool in my hand, feeling the weight and the shape of it and seeing a digital representation of it in VR.  I was very aware that I was in VR, and the CGI rendering was not photoreal, but it didn’t have to be. It was so compelling that, very quickly, the other things in the room that were not mapped to a physical object became dangerous because I would want to sit on something that didn’t turn out to have a physical corollary.  When I visited their lab, the enthusiasm of the team really had that buzz that you expect at the best places.  It’s a big loft space with a 3D printer for rapid prototyping pieces of hardware on the fly.  There’s this middle aged Chinese seamstress on an old Singer sewing machine stitching together plastic and spandex full body suits. Espresso machines every five meters. Just the energy and the enthusiasm of the people working there is encouraging to me.

paNoitom Project Alice

PIG: With the dearth of truly spectacular experiences or a real business model, the West is arguably in the “trough of disillusionment” when it comes to VR.  Can we expect something similar in China?

KG: Friends of mine in Chinese companies, whether they’re developing content or software, have said it was much easier to get money in Summer 2015 than it is has been this Summer (2016).  The people who are still investing have more questions than they used to, whereas before they were just throwing money at you.   The silver lining is that it will separate the serious from the non-serious and have everybody take a breath and figure out, okay, what is the business model?  Everybody with their heads on fire, as they were a year ago, doesn’t necessarily mean that something’s being accomplished.  If everybody just starts developing hardware, software or content, without any real way to distribute it, with no pipeline, then it’s all just a lot of pomp and circumstance for nothing. 

Investors need to really think about if they’re in it for the long term or not. Especially in China, many investors are very unrealistic in terms of the simple mathematics of how long it takes to get a return.  Take the time of development, production, post and the approval process time – which in China is one month to a half year – then add the distribution, and only then is your first revenue trickling back.  You’re talking about a year or two at least before you can start to see any kind of revenue, let alone profit.  So if you’re not in it for that, don’t waste your time or the time of the people who you’re giving money to.  A VR startup with investors that want a quick turnaround on profit is always required to undercut the more innovative things it’s trying to do and come out with a dumbed-down, scaled-down version, just to try to make a quick buck.

If investors do have a stomach for it, I think there’s a payoff.  I see a future and that’s why I’m involved, but it’s not a quick buck kind of situation.  It’s going to be about putting money in, whether that’s an investor, or a producer like myself deferring fees on a project that I think will advance something.  I think that’s really what’s required to get the seriousness that you need for true progress.

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PIG: What does the International Animation and Virtual Reality Research Center do?

KG: We’re squarely focused on content, across virtual, augmented and mixed reality.  We’re trying to demonstrate that it’s possible to create Chinese content in China by Chinese that follows the prescriptions of what’s permissible, but can also still be engaging.  The Deans of the school gave me a pretty wide berth, but the two guidelines are: one, everything we do has to represent Chinese culture and represent it in a favorable way, and two, that there should be some educational component.  That might sound like a recipe for disaster, where you’re going to end up with this didactic or preachy bit of content, right?  That’s what we’re trying not to do.  We’re trying to have the medicine taste good so that you don’t notice that you’re being taught something.

Ang Lee’s Whole Shebang

Ang Lee’s “Billy Lynn’s Long Halftime Walk” is the first feature film ever to be shot at 120 frames per second, overtaking second-placed The Hobbit (48 fps), which had doubled the industry standard 24 fps.  Lee describes the combo of 3D, 4K HD and 120 fps as “The Whole Shebang”.

China has embraced the film, a China-US-UK coproduction, more than any other market, bringing the greatest box office returns, partly due to Lee’s popularity and partly because of a widespread penchant for new technology.  Two of the six theatres worldwide capable of projecting the film in all its glory were in China.  Hollywood executives and US audiences meanwhile, were largely unmoved. 

Critical reaction to the 120 fps has been mixed. Some have called it “too real” or a distraction.  Others have pointed out that the ‘hyper-realism’ it creates exposes the artifice of the performance.  Variety’s Brent Lang delivered a balanced critique, concluding, “[the film] represents both a massive step forward for moviemaking and a painful reminder that innovation comes at a price. It is a beautiful mess.”

At the ICEVE conference at the Beijing Film Academy this month, the movie’s 3D Stereographer & Stereo Supervisor, Demetri Portelli proclaimed on stage, “I want to document this film in history as an important event.”  We caught up with him to find out why.

Ang LeeAng Lee

120 fps “the ultimate solution”

When Ang Lee was looking for an “independent spirit” to help him realise his ambitious new project for under $50m with just 49 days shoot, he came looking for Portelli and digital engineer partner, Ben Gervais.  Following $150m-plus budget 3D projects with Martin Scorsese’s Hugo, and 47 Ronin, the duo had confounded critics by proving that 3D could be efficient and affordable, delivering the 3D and VFX for Jean Paul Jeunet’s The Young and Prodigious T.S Spivet for under $2m in an overall project that cost less than $30m.

OZ4A4513Demetri Portelli, 3D Stereographer & Stereo Supervisor of Billy Lynn’s Long Halftime Walk at the ICEVE conference, Beijing

After Life of Pi, Lee was looking for a crisper image.  Working at 24fps, he encountered a problem with motion and strobing when editing close-ups. “It was an ability to ‘lock in’ your eyes and look at somebody”, says Portelli. “He wanted to go to a high frame rate so that when you look at the face, you can lock in and hold your gaze on an actor’s eyes and stay there.  That’s really important in communicating with the audience and having a true experience.” 

LPLife of Pi, directed by Ang Lee, 2012

Lee also wanted to separate himself from the classic film aesthetic. “Ang said, “I think you guys were all wrong on Hugo.  You got the Alexa and tried to make a digital film look like an old movie.  What’s wrong with taking a digital camera and trying to find new aesthetics that are intrinsic to digital cinema?  We need artists to explore.”

The initial thinking was to shoot at differing frame rates – 24, 48, 60, 120 – which would have required commitment to decisions in principal photography.  Shooting everything at 120 would mean capturing substantially more data – around 7.5 to 10 terabytes a day, roughly 40 times that of a normal 2D film – but would provide high quality images for every shot and ultimate flexibility in post.

In Lee’s office, in a custom-built postproduction unit cooled with powerful air conditioning, Lee exercised that freedom, adjusting the frame rate, depth and resolution to complement and enhance the action. “There are shots at 24 and 60 where he drops the aesthetic down to 2K to give it the old movie feeling,” says Portelli.  “You can ramp scenes from 18 fps to 30 to 48.  Maybe you’re in 2D but then you get into a close-up, and you go to 3D-120.”

The BIG close up shows the technology best. The human face gives all the information.

The big close up shows the 120fps-4K technology best. The human face gives all the information

Ultimately, Portelli believes shooting at 120 fps makes every shot better, even if the frame rate is eventually dropped, “24 is better if you shoot 120 and deliver 24.  The reason is you can control the shutter in postproduction. The hard thing for us in 3D was strobing and judder at 24.  120 is so smooth because you have all those frames, so nothing hurts.”

He continues, “By gathering more information, you’re delivering a better movie for everybody all the way down the line, including 2D, 3D, 24, 60, because you’re controlling the sequence of the frames, and you’re controlling clarity vs. blur.  You’re controlling a cinematic look vs. a hyper real look.”  That flexibility ultimately enables delivery in various different formats to suit any screen.

On set, Lee and Portelli would qualify each shot using a one-to-five “gear system” shorthand.  For what Lee saw as “fantasy” characters like Billy’s love interest, they would go to 2D, a “low gear”.   The fifth gear was reserved for the big half-time show and climactic battle scene. “For Ang”, says Portelli, “the whole shebang meant realism.”

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Early on, the team had thought 120 fps shooting would best lend itself to action scenes due to its strength in capturing motion, but the real revelation was in the close-ups. “The beauty of 120 is that it shows everything, and it shows more.  You start to understand the beauty that’s there in a simple close-up. It shows muscles, it sees through the skin.  You can count the hairs in eyebrows and see the little expressions in someone’s eyes.”

“But,” he warns, “You have to be careful. It’s a very powerful tool.  You can make somebody look very interesting but you can also make someone look a little bit ugly.”

He continues, “It reveals the artifice of filmmaking.  The performance and the direction has to change, because if you see the actor thinking about his lines and looking down at his marks, he gives himself away.”

Portelli says naturalistic subjects are best.  “We’re trying to show the world in a different light.  Ang wanted to be bold, a project that put us in a natural environment in Morocco… and have you look at those little details in the sand and the dust.” 

BL_battle

People call it hyperrealism, but Billy Lynn is really just closer to just being a realistic project.  I think 120 shows the world much closer to how we see it in daily life.”

Portelli calls Billy Lynn “the brightest film you’ve ever seen.” The initial idea was to project at a standard brightness of 14 foot-lamberts, “But before we had calibrated [the projectors], Ang looked at full brightness (28 foot-lamberts) and said, “My god, that’s amazing!  He was trying to make a bold statement.  We’re trying to give you an experience.”

Portelli describes it as a “sensory overload.”  In fact, he says, “There are people who have gone to the film who have had a bit of anxiety because they’re not used to being put in that position as the viewer.” 

Billy Lynn HC

There is room for improvement in the next 120 fps outing.  The first challenge is to create smaller cameras than the hulking F65.  In terms of postproduction, Portelli says, “I think we can do more variations and soften the DI a bit and be a little less heavy handed.”  And of course, for more people to enjoy the experience, many more theatres will need to be capable of screening the full frame rate.

Lee’s next film, ‘Thrilla in Manila’ will be shot at 120 fps.  “Ang does not want to work at lower than 120fps”, says Portelli.  Lee hopes this will be the beginning of a movement.  Whereas James Cameron has called 120fps a storytelling tool, Lee is calling it a format.  “It’s not just a tool, this is a new way to see, so let’s start looking and let’s start talking about that. [Ang] is just beginning to discover a lot of new things.  You will see a lot of change in his next film.  Billy Lynn is just the beginning of what can you do with this.”

 

PIGMAN: Happy New Year!

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ENG

 

What a year!

2016 was a great year for PIG China. We were directly involved in films which garnered over a dozen major awards at festivals worldwide!

The 2015 Dove spot “Chose Beautiful” we locally produced won a Grand Clio at Clio Awards. The spot also won silver and bronze Cannes Lions, and a gold at ROI.

The widely spread and discussed SK-II “Leftover Women” not only made its way to international news headlines, but also garnered Glass, Gold, Silver and Bronze Cannes Lions; a Silver at London International Awards; a Bronze at ROI; and landed Floyd Russ a Silver Young Director Awards in Cannes.

Then our 2 BMW spot landed awards at ROI: BMW7 Visionary Lights for the 7 Series with a Gold Award, and BMW M Series with Silver and Bronze Awards.

BMW 7 Visionary Lights
BMW M Series

And finally, P.I.G. director Nelson Cabrera finished the year with over 20 major international awards for his work on the Saltwater Brewery campaign, including 2 Golds, a silver and a Bronze Cannes Lions; a Gold and 2 Silver Clios; D&AD Impact White Pencil; LIA awards, etc…

INSERT SALTWATER BREWERY FILM (I will ask Nelson for it)

Thank you all for supporting PIG China in 2016, and here’s hoping 2017 will be an even better year!

Happy New Year!

Merry Christmas!

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PIGMAN: Halloween

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Jessica Sanders Champions Female Filmmaking

Jessica Sanders’ empowering new short film features some of the world’s most talented emerging female film directors, talking about their diverse and accomplished collective body of films.

The two-and-a-half-minute short titled “Fox Directors” celebrates the exceptional work being created by female directors, simultaneously casting a spotlight on shocking statistics about the numbers of women being employed as directors: just 7% of Hollywood films are directed by women – and accounted for only 9% of directors on the top 250 highest-grossing films of 2015 – and only 17% of TV directors are female.

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Sanders partnered with fashion and lifestyle media company Refinery29 to create a film for its programming slate ShatterBox Anthology, which profiles some of Fox’s leading female talent.  The resulting film was made in collaboration with Fox’s new Global Directing Initiative, a program that aims to create more opportunities for women and underrepresented filmmakers.  All the directors featured in Fox Directors participated in the initiative, including Sanders herself.

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Jessica Sanders is an Academy Award nominated, Sundance and Cannes Young Director Award-winning director and producer of narrative and documentary films and commercials.  Her credits include the feature documentaries After Innocence (Sundance winner, Academy Award shortlist), Sing (Academy Award nominated) and March of The Living.

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Fox Directors has been widely featured online, including selection as Creativity Online’s ‘Editor’s Pick’. Building awareness and provoking discussion are the first positive steps in a long journey ahead.

*Jessica is represented in China by P.I.G.*

PIGPEN CINEMA Presents CARTEL LAND

  • Tue. 30 Aug, 2016
  • Doors open 9 | Movie starts 9:30
  • 65 Maoming Bei Lu (Weihai Lu/Yan’an Lu)
  • Drink specials: beer|wine|cocktails
  • Free “Grumpy” movie popcorn
  • Only 35 seats
  • First come first serve policy

With unprecedented access, CARTEL LAND is a riveting, look at the journeys of two modern-day vigilante groups and their shared enemy – the violent Knights Templar drug cartel. In the Mexican state of Michoacán, Dr. Jose Mireles, a small-town physician leads the Autodefensas, a citizen uprising against the murderous drug cartel. Meanwhile, in Arizona’s Altar Valley – a corridor known as Cocaine Alley – Tim “Nailer” Foley, an American veteran, heads a small paramilitary group called Arizona Border Recon, whose goal is to stop Mexico’s drug wars from seeping across the border.

Streams Become Reality

With the commercial opportunities, the meteoric rise of live streaming poses important questions for the society in which it thrives.

The ever-growing list of live streaming apps and websites in China currently stands at around 300.  In case tracking every thought, outfit change and coffee break by WeChat, Weibo and Meipai weren’t enough, every man, woman and celeb is now streaming themselves in real time, transporting viewers from exotic locales, to sport stadia, to the red carpet, all the way to the front rooms of glum bachelors chewing pot noodles.  It is estimated that at any given moment there may be more than 60,000 people live streaming themselves, with men comprising the majority of the audience, particularly for the two most popular subjects; live video games and doe-eyed, subservient young ‘Girl Goddesses’ preening and purring into their iPhone cameras. 

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Modern Chinese society provides a highly fertile environment for the phenomenon to spawn and multiply.  500 million smartphones in circulation contribute to the 5th highest worldwide penetration and ample opportunities for engaging.  In bleak cities everywhere, millions of lonely and bored migrant workers far from loved ones turn to streams to escape, alleviate boredom or seek companionship.  Stuck in a hopeless situation beyond their control, there is surely appeal to controlling the outcome of their interactions, even if in the smallest possible way.  In streams, a swelling middle class looks for lifestyle inspiration from achievers and adventurers, while a generation of twenty and thirtysomething only-children finds friends, confidants and role models.

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The phenomenon is intriguing, not so much for its popularity – after all, it may be considered just an extension of the already all-pervasive social media – rather for the fact that viewers are so eager to spend hard earned yuan on it.  It is significant that of the 300,000 people that watched Wanda Chairman Wang Jianlin stream himself playing poker on a private jet, many of the low income viewers felt compelled to donate money to China’s wealthiest man.

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Live streaming has become an extremely lucrative industry, a mini economy fuelled by virtual gifts, in the form of e-roses, e-chocolates or other e-token that equate to money, that the viewer may donate in exchange for influence on the streamer’s behavior or to express gratitude.  The highest earners by far are the pretty young girls offering chitchat, makeup tips or flashes of cleavage, some of whom earn from 80,000 yuan per night, up as far as Papi Jiang, who whipped up a berserk 900,000 yuan during one 90 minute session.

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As the girls get rich, so too are the hosting platforms, which take 50% or more of the gift revenue and are beginning to sell advertising space.  Investors have so far pumped an estimated $750 million of venture capital into live streaming apps.  Brands are pouncing too, paying key opinion streamers to endorse products, or streaming directly from their stores.  Last month, American department store giant Macy’s attracted 100,000 viewers to a live Chinese language in-store broadcast, while China’s highly evolved e-commerce ecosystem, which in this case saw Macy’s team with Tmall, allows viewers to easily make purchases within the stream. 

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In addition to the throngs of amateurs jumping on the stream train, established content creators are also taking notice.  Rebecca Yang, founder and CEO of IPCN, an IP licenser and original creator regards it as an opportunity that cannot be ignored, saying,  I can’t say I am pro this culture, but I want to understand it. We as content providers need to think how it can be taken to our advantage, to create something a lot more valuable and entertaining.”  IPCN recently launched a stream of their Shanghai office with heavily scripted elements occurring alongside the real.  It marks a new form of reality television, somewhere between scripted dramas filmed live, and real shows like Big Brother that, though heavily manipulated, are not actively scripted or cast with actors.

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Live streaming stokes the same debates about individual health and wellbeing that have existed since social media began dominating young peoples’ consciousness.  Despite connecting digitally, individuals are extracting themselves from the real world unfolding around them, often at the expense of physical human contact.  More than ever before, the impressionable are following unsuitable role models that promote unrealistic ideals or body image.

The psychological well-being of a growing numbers of addicted streamers may be a cause for concern for authorities, though a cynic might quote the benefits of an increasingly isolated, distracted population, venting their social frustrations in the relative harmlessness of online live stream rooms.  Regardless, said authorities are naturally monitoring the situation, while streaming services themselves are employing large teams to watch for political or overly sexual content.  However, with diverse new streams cropping up daily, rules on specifically forbidden content are being issued on a reactive rather than proactive basis.  Infamously, in a bid to curb the increasingly raunchy Girl Goddesses, streamers are now banned from eating bananas in a suggestive fashion. 

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Live streaming is no fad, hot app or hobby.  2D feeds will soon be supplemented with, and perhaps eventually replaced by, immersive virtual reality streams, as apparatus becomes readily available and app compatible.  As big business, brands and celebrities inject promotional and financial clout and little sign of the socio-economic conditions abating, expect the live stream wave to continue to engulf all before it.