China Tightens Control Over Its Growing Online Streaming Industry By Introducing New Regulations

On 12 December 2016, the PRC Ministry of Culture released the Administrative Measures for Business Activities of Online Performances (the "Measures"). The Measures target providers of live performances broadcast or streamed over the Internet or a mobile network ("Streaming Services Providers") who derive a profit from such activities through advertising, sponsorship or by charging for access. The Measures will come into effect on 1 January 2017.

Streaming Services Providers Are Now in Essence Content Gatekeepers

The new regulations require Streaming Services Providers to obtain a permit from provincial cultural affairs bureaus and display their license number in a prominent place on the website, i.e., on the homepage or landing page. Overseas Streaming Service Providers, including those from Hong Kong, Macau, and Taiwan, will have to apply for a license from the Ministry of Culture before launching a live channel.