China’s multibillion-dollar livestreaming industry is driven, in part, by about 24,000 talent agencies, which provide training and equipment to livestreamers to help them gain followers and income. These agencies take commissions from the earnings of individual influencers, as they sing, dance, sell products, flirt with the audience, or stage life-threatening gimmicks to make a living.

Over the past few years, talent agencies have recruited aspiring influencers en masse by promising them a shortcut to fame and fortune in a tough job market, hoping some of them turn out to be big earners. But with a flooded influencer market and heightened competition, some influencers are finding themselves trapped in an exhausting, low-paying gig that they have to pay hefty penalties to exit.

In December 2023 alone, Chinese courts handed down at least 23 judgements regarding livestreaming contract disputes, according to official database China Judgements Online. Livestreamers were ordered to compensate agencies on the training, accommodation, and equipment costs after they left the gig or switched to competing platforms. Some have been penalized for going live through personal alt accounts, so they could avoid sharing their income with agencies. Lawyers told Rest of World many other conflicts were resolved through mediation.

…Following a prolonged lawsuit, the court ordered her to pay 100,000 yuan ($14,051) for breach of contract, she said. As part of China’s social credit system, those who fail to honor court orders can be restricted from buying plane and train tickets. Songqin didn’t have the money to pay the penalty, she said, and has not been able to travel to visit her family.

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Zhou, V. (2024, February 20). Want to stop livestreaming? That’ll be $42,000. Rest of World.