(Yicai) Feb. 21 -- As livestreamed e-commerce becomes more popular among Chinese consumers, Taobao has set up a company to provide new live sales studios on the online marketplace run by e-commerce giant Alibaba Group Holding with tailored hosting services.

Zhejiang Taobao Livestreaming E-Commerce was recently set up by Alibaba’s Taotian Group with a registered capital of CNY10 million (USD1.4 million), according to corporate data platform Tianyancha. The firm’s main shareholder is Beijing Baina Yuedong Technology, a company whose legal representative is Cheng Daofang, the head of Taobao’s livestreaming and content business department.

Taobao Livestreaming targets new live sales hosts that do not have their own livestreaming teams, said Director Yuan Ge. The hosting service will help new live streamers and businesses cut operating costs in the early stage and reduce investment risk.

The firm will cooperate with live streamers on the lowest acceptable revenue and be flexible in distributing profit to them, Yuan said. Contracts run for half a year and livestreamers can withdraw at any time. The business won’t compete with other multi-channel networks, he added.

Taotian, which runs the Taobao and Tmall retail platforms, is very familiar with Taobao and will be able to find live streamers the resources they need, said Zhuang Shuai, an expert on e-commerce retail and founder of Bailian Consulting. Forming a company targeting new livestreaming studios will create close and stable ties between Taobao and live sales hosts, he added.

Taobao will likely come under scrutiny for distributing resources to its own live sales hosting business and its relationships with third-party multi-channel networks could be tested, said Li Chengdong, e-commerce analyst and founder of think tank Dolphin.

Editor: Kim Taylor