Chinese Media Regulator Shuts Down Weibo's Video Services for Operating Without License
Yicai Global
DATE:  Jun 22 2017
/ SOURCE:  Yicai

 

(Yicai Global) June 22 -- China's media regulator said it will shut down the audio and video services run by Weibo Corp. [NASDAQ:WB], often dubbed the Chinese Twitter, as it doesn't have the required license.

The State Administration of Press, Publication, Radio, Film and Television announced the decision in a short notice published today, while warning popular live-streaming platform Acfun.cn and news portal ifeng.com they could also face the same fate.

The platforms began providing audio and video services without licenses, broadcast "politically-related content inconsistent with state regulations," and promoted negative comments, the administration said, adding that the platforms need to overhaul their operational model.

Last year, the regulator issued a document to strengthen the supervision of video and audio programs on China's social media platforms, such as Weibo and Tencent Holdings Ltd.'s [HKG:0700] WeChat. The new policy made both content platforms and individual creators or uploaders responsible for the content hosted on the sites.

Sina Corp. [NASDAQ:SINA]'s Weibo reached 313 million users at the end of last year. Driven by the fast development of video and live content, Weibo reported net operating income of USD655.8 million in 2016, up 37 percent on the year.

Following the news, Weibo's share price dipped by more than 6 percent before the market opened.

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Keywords:   Weibo,Sina,Live-Streaming,REGULATION