Business Day

Tencent rolls out US service to rival Twitch

- Zheping Huang and Vlad Savov Hong Kong/Tokyo

Tencent Holdings is rolling out a live-streaming service similar to Amazon’s Twitch in the US, making a rare foray into US social media.

The Chinese company has been testing a mobile-focused streaming network via an affiliate in the US since at least March. Initially called Madcat and now branded Trovo Live, the new service closely resembles Twitch in its appearance and functional­ity.

Beyond Tencent’s own portfolio of popular games such as Fortnite and PlayerUnkn­own’s Battlegrou­nds Mobile, Trovo also spotlights marquee titles such as Grand Theft Auto and Destiny 2. Last week it detailed plans on its website to entice and reward creators with a $30m partnershi­p programme starting in July.

Tencent, in which Naspers has a 31.2% stake, dominates gaming and social media in China and may be one of the few companies with the resources to challenge Twitch. But the WeChat operator has met with mixed results in its efforts to build online users abroad and Trovo, for now, is only an embryonic service.

Still in beta testing, Trovo has gone largely unnoticed outside the gaming community. Its bestattend­ed live streams have only a few dozen viewers at a time, though its Discord chat channel numbers more than 5,000 members. It has attracted some creators from Twitch, YouTube and Microsoft’s Mixer platform.

Trovo says in the terms of service on its website that it is an affiliate of Tencent, without elaboratin­g. The document lists a contact address that matches that of Tencent’s headquarte­rs in Palo Alto, California. Tencent declined to comment.

Tencent has been expanding its online streaming assets in recent months, having spent $263m to buy control of China’s Twitch equivalent Huya in April, and last week acquiring content and technology from struggling Southeast Asian outfit iFlix.

CHINESE OWNERSHIP

Developmen­t and testing of Trovo has proceeded under the radar at a time of increased scrutiny over Chinese ownership of social media in the US.

Rival ByteDance has been the subject of concerns raised by US senator Marco Rubio about platforms such as its TikTok video-sharing service being “used as a tool by the Chinese Communist Party to extend its authoritar­ian censorship”.

Zynn — a video-sharing app from Tencent-backed Kuaishou that recently spiked in US downloads — has been vague about its Chinese connection.

Trovo’s privacy policy notes that its servers are based in Hong Kong, Singapore and the US; however, its support and engineerin­g teams, which will have access to user informatio­n, are located in “offices around the world” that include mainland China.

Like Twitch, Trovo sports a carousel showcase of live channels, sidebars for chat with other viewers and channel recommenda­tions highlighti­ng the most popular active creators. It also has paid subscripti­ons and rewards that let viewers support their favoured streamers.

Another Twitch similarity is the tiered partnershi­p programme designed to encourage gamers to join and evangelise the service.

The imminent arrival of Trovo comes at a moment of upheaval on the US gamestream­ing scene. Microsoft has just announced it is closing its Mixer platform, which had poached high-profile streamer Ninja away from Twitch last summer in an expensive but ultimately unfruitful move.

Twitch itself has been rocked by a series of allegation­s about turning a blind eye to sexual harassment and abuse by some of its popular users. The Amazon-owned service has said it will investigat­e and suspend offending accounts.

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