- Chinese video-streaming firms are trading lower in U.S. premarket action after a report of a new rival pushing into the market.
- Beijing ByteDance plans to add new film and TV drama segments to its Xigua Video app by early next year, according to the South China Morning Post.
- That means exclusive digital rights to some existing shows as well as a number of original film/TV projects, according to the report. The company is looking at a paid subscription model.
- Along with Xigua, ByteDance runs the popular app Douyin (known outside China as Tik Tok), which has 15-second clips and is a go-to for China's Gen Z-ers posting video.
- Lower this morning: iQiyi (NASDAQ:IQ), down 2.5% premarket; Huya Broadcasting (NYSE:HUYA), down 2.4%; YY, down 1.9%; Momo (NASDAQ:MOMO), down 2.4%; Bilibili (NASDAQ:BILI), down 1.6%.
- The new effort would compete also with Tencent Video and Youku Tudou; OTCPK:TCEHY is down 1.4% premarket and Youku Tudou owner Alibaba (NYSE:BABA) down 1.9%.