An Empirical Case Study of the Impact of Superstar Streamer Exits on Live Streaming E-Commerce Platforms

Abstract

Although superstar streamers currently dominate the emerging live streaming e-commerce (LSE) platforms, their enduring presence on such platforms is not guaranteed. Superstar streamers are important because they attract consumers, promote new sellers, and increase sales. However, their exit from LSE platforms has been largely neglected in the literature. To address this research gap, this study examines how the exit of superstar streamers impacts peer streamers on the same LSE platform. Using data collected from Taobao Live, we model the superstar exit effect, using the unexpected exit of Viya, a once popular streamer on Taobao Live, as an exogenous shock on the performance of peer streamers. Also, we examine challenges posed by the exit of superstar streamers from a market structure perspective, considering the heterogeneous impact of streamer types and brand halo effects. Our results suggest that in general, streamers on LSE platforms benefit from a superstar streamer’s exit through a redistribution of consumer demand across similar streamers. Furthermore, we found that streamers employed by brands benefit from the brand halo effect and gain more sales and viewership than independent streamers. Our study extends the literature on LSE, the superstar effect, and brand halo effects. Our findings also have practical implications for platform managers, brands, streamers, and consumers.

Keywords: Live streaming e-commerce, superstar effect, brand halo effect, platform ecosystem, streamer type