China video-streaming ban sends Sina Weibo shares down 6.1 percent

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China video-streaming ban sends Sina Weibo shares down 6.1 percent
China video-streaming ban sends Sina Weibo shares down 6.1 percent
China video-streaming ban sends Sina Weibo shares down 6.1 percent
China video-streaming ban sends Sina Weibo shares down 6.1 percent

China’s media oversight body announced Thursday that it has ordered three prominent Internet companies to terminate their video and audio streaming services.

China suspended the video and audio service of several companies including Weibo, maker of a platform sometimes referred to as China’s equivalent of Twitter, for not having the correct licences and posting content in violation of government regulation.

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Weibo said it is talking to government authorities to “understand the scope of the notice” issued by the State Administration of Press, Publication, Radio, Film and Television of the People’s Republic of China and intends to fully cooperate with them.

“The company will also evaluate the impact of this notice on its operations and its administrative options,” it added. It is unclear how long the ban will last.

According to Financial Times (FT), news portal iFeng and video streaming platform Acfun were also impacted by the move.

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The report said Weibo is worth more than Twitter with a valuation of $11.3 billion and 300 million monthly active users, adding the move will be a big blow for the microblogging website as it relies on video streaming for advertising revenues.

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China has a history of cracking down on content the government deems inappropriate. Earlier this month, around 60 social media accounts were shut down for “vulgar content” which “negatively impacted society”, FT said.

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