Briefing: Live-streaming platform Panda TV confirms bankruptcy in internal letter

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疑似确认熊猫破产 张菊元:结束是无奈而理智的选择 – Sina News

What happened: The chief operating officer of game live-streaming platform Panda TV confirmed in an internal letter on Thursday that it will file for bankruptcy, saying that the decision is beyond the company’s control and is “the most reasonable choice considering the general situation.” Panda TV has been operating without new funding for the past 22 months, during which the company has downsized several times to cut costs, COO Juyuan Zhang said in the letter. As of writing, only the enterprise app for live-stream performers can be found on the Apple App Store.

Why it’s important: As the third most-popular game live-streaming platform in China, Panda TV’s descent was swift. Launched in October 2015, the platform lasted less than three and half years in China’s cutthroat live-streaming industry. According to estimates by media outlet IT Times, the platform is RMB 1 billion in debt, including RMB 700 million in bandwidth costs and RMB 300 million in livestreamer salaries. Panda TV’s exit leaves only two major players in the market, Douyu and Huya, both backed by Tencent, with other platforms falling far behind in terms of daily active users.