Clubhouse in China: Will the Social Audio App Succeed?

Clubhouse's Potential in the Chinese Market

Recently, I encountered a Clubhouse discussion led by Feng Dahui, a prominent individual within the Chinese startup ecosystem. This took place shortly after midnight on Friday.

Despite the late hour, the room maintained a substantial audience of nearly 500 participants. A significant portion of these listeners comprised engineers, product managers, and entrepreneurs originating from China.

The Central Question: Will Clubhouse Thrive?

The core of the conversation revolved around the prospects of Clubhouse – the application facilitating spontaneous voice conversations within virtual spaces – achieving success within China. This is a question that has occupied my own thoughts recently.

Considering the considerable buzz surrounding this audio-based social network in Silicon Valley, it’s logical that informed and technologically adept Chinese users are beginning to explore the platform.

Currently, demand for Clubhouse invitations within China is exceptionally high. Individuals are reportedly spending upwards of $100 to acquire them through unofficial channels.

Concerns Regarding Censorship and Regulation

Conversations with numerous users suggest a widespread belief that Clubhouse may not fully realize its potential, or even achieve product-market fit, before facing a potential ban.

Several popular Chinese-language rooms are already hosting discussions on subjects typically subject to censorship within China. These topics include cryptocurrency trading and the Hong Kong protests.

The Rise of Domestic Alternatives

It’s worth noting that Chinese developers are actively creating Clubhouse clones and similar applications. Herock, a Chinese entrepreneur and blogger, informed me that he is aware of “dozens of local teams” currently engaged in developing comparable platforms.

Furthermore, voice-based networking isn't a novel concept in China. Various iterations have existed for years, though in different formats.

The key question remains: if Clubhouse is ultimately blocked, will any of these domestic alternatives emerge as successful contenders?

The Challenges of Information Control in China

A straightforward replication of Clubhouse’s functionality is unlikely to succeed within the Chinese market.

Several factors contribute to this diminished potential, despite China boasting a vast online population of nearly one billion internet users. The core attraction of Clubhouse lies in its spontaneous, real-time conversational format. However, a founder of a Chinese audio application questioned, “How could the Chinese government permit unrestricted discussions to unfold and disseminate without exercising control?” – declining to be identified for the purposes of this report.

The regulatory scrutiny surrounding video live streaming in China serves as a pertinent example, restricting both speaker access and permissible content.

The founder referenced a notable online demonstration from 2011. A collective of thousands of small-scale vendors orchestrated a cyberattack against Alibaba’s online marketplace in response to a proposed fee increase. The coordination of this effort was facilitated by YY, initially a voice-chat platform geared towards gamers, which subsequently evolved into a prominent video live streaming service.

“Authorities are wary of the influence inherent in real-time audio communication,” the founder emphasized.

Evidence suggests that Clubhouse is already facing potential censorship. While currently accessible in China without the need for a VPN or other circumvention tools (as of this moment), the iOS-exclusive application is not listed on China’s App Store.

Sensor Tower, an app analytics firm, reports that Clubhouse was removed from the Chinese App Store shortly following its global launch in late September.

Presently, Chinese users seeking to install Clubhouse must switch to an App Store region outside of China, which inherently restricts the product’s accessibility to those with the means to do so.

It remains uncertain whether Apple proactively removed Clubhouse in anticipation of governmental intervention, as a subsequent removal of a significant foreign application could invite accusations of censorship. Alternatively, Clubhouse may have voluntarily withdrawn the app, recognizing that any form of live broadcasting would likely be subject to oversight by Chinese regulators, ultimately impacting user experience.

Given its growing popularity in other regions, entering the Chinese market may not be a priority for Clubhouse at this time. Sensor Tower estimates approximately 3.6 million worldwide installs to date.

The majority of these installs originate in the United States, accounting for nearly 2 million first-time downloads, followed by Japan and Germany, each with over 400,000 downloads.

Key Considerations for Clubhouse in China

• Regulatory Environment: Strict controls on live streaming and online discourse.
• Censorship: Potential for app removal and content filtering.
• Accessibility: Limited access for users without international App Store access.
• Market Prioritization: Current focus on growth in other regions.

Clubhouse's Potential in China

The absence of a domestically-grown equivalent to Clubhouse within China’s internet landscape can likely be attributed to the challenges of hosting uncensored, open dialogue. However, even if permitted to operate, replicating the widespread success seen by platforms like Douyin and WeChat may prove difficult for an app mirroring Clubhouse’s functionality.

An Exclusive Platform

Clubhouse is often described as an “elitist” platform, functioning as a voice-based counterpart to Twitter, according to Marco Lai, CEO and founder of Lizhi, a Chinese audio platform listed on NASDAQ. Currently, Clubhouse’s invitation-only system has largely limited its American user base to individuals within the technology, arts, and entertainment industries.

Similar trends are observable within China, as noted by Herock, with users predominantly concentrated in sectors such as finance, startups, product management, and cryptocurrency trading.

User Numbers and Time Constraints

“While it may appear that Clubhouse has experienced rapid growth within specific circles, I doubt the total number of users in China is substantial,” Herock stated.

Even among existing users, the availability of free time presents a significant hurdle. Personal observation revealed peak user activity in China occurring during late evening hours, after typical workdays. Zhou Lingyu, founder of Rainmaker, a Chinese professional networking community, questioned whether Clubhouse could attract a broader audience, asking, “Who in China possesses that much discretionary time?”

The "996" Work Culture

Zhou Lingyu’s observation may not be universally applicable, but the demographic Clubhouse currently attracts – tech-savvy, educated professionals – are often subject to the demanding “996” work schedule, prevalent in many Chinese technology companies. The engaging, live, and interactive nature of Clubhouse conversations is appealing, but it also demands a considerable time commitment, potentially conflicting with the preferences of those accustomed to maximizing efficiency.

Incentivizing Moderators and Content Creation

Maintaining active moderation may necessitate providing tangible incentives beyond simply fostering connections. A potential solution involves transforming valuable discussions into podcast-style episodes. “Clubhouse is ideally suited for spontaneous, informal exchanges,” Zhou explained. “However, creators of high-quality content would benefit from the ability to record conversations for later, repeated listening.”

This would allow for content to be consumed at the listener’s convenience, addressing the time constraints faced by many potential users.

Audio Networking in China: A Distinct Approach

The development of audio networking in China has followed a somewhat divergent path. Several companies prioritize gamification, integrating playful and interactive elements extensively within their applications.

For instance, Lizhi’s social podcasting application extends beyond simple audio consumption. It facilitates direct messaging between listeners and hosts, allows for virtual gifting as a form of support, and enables features like shadowing recordings and online karaoke competitions.

Managed Interaction and Content Quality

The interaction between content creators and their audience on platforms like Lizhi is carefully managed. Operational teams actively design campaigns and collaborate with creators to maintain both content quality and high levels of user engagement. This contrasts with the more organic growth observed in Clubhouse.

Lai observed that Chinese platforms tend to emphasize spectacle and performance, rather than mirroring authentic social interactions. Clubhouse, in comparison, offers a simpler experience, akin to a virtual coffee shop.

Tiya and Dizhua: Alternative Models

Tiya, another offering from Lizhi, is frequently positioned as a Chinese equivalent to Clubhouse. However, Tiya primarily caters to a younger demographic—predominantly individuals aged 15-22—and centers on entertainment, combining audio chat with gaming and sports viewing. This addresses a desire for social connection.

Launched in 2019, Dizhua represents another Chinese application often compared to Clubhouse. Unlike Clubhouse’s reliance on pre-existing social networks for room discovery, Dizhua employs an interest-based matching system for anonymous users. Dizhua encourages sustained engagement around specific themes, while Clubhouse conversations are often more ephemeral.

Differences in User Experience and Community

“Clubhouse is a purely audio-focused application, lacking features like timelines or comment sections,” explained Armin Li, a venture capital expert. “It provides a casual, drop-in experience suitable for situations where user needs are undefined, such as socializing or multitasking. The level of community involvement, content quality, and user caliber seen on Clubhouse is unparalleled in Chinese voice products.”

Regulation and Anonymity

A key distinction lies in content moderation. Conversations on Chinese platforms are subject to oversight by content auditors. Furthermore, real-name registration is mandatory for internet users in China, effectively eliminating online anonymity. Discussion topics are often restricted, generally favoring lighthearted and non-controversial subjects.

Motivations for Clubhouse Adoption in China

Despite these limitations, Clubhouse attracted a Chinese audience. Some joined due to FOMO (fear of missing out). Entrepreneurs actively seek new market opportunities, while product managers from major internet companies aim to glean insights applicable to their own products. Bitcoin enthusiasts and activists, however, viewed Clubhouse as a relatively unregulated space.

Technical Infrastructure of Clubhouse

The seamless functionality of Clubhouse within China is particularly noteworthy. Typically, even when not officially prohibited, foreign applications often experience slow loading times in China due to geographical server distances.

However, Clubhouse doesn't independently develop the underlying technology for its large-scale chat rooms, which can accommodate thousands of users simultaneously. Instead, the platform leverages a real-time audio Software Development Kit (SDK) provided by Agora, as confirmed by two separate sources.

This information was also reported by the South China Morning Post. When approached for confirmation regarding this partnership, Agora CEO Tony Zhao indicated, through email correspondence, that he is unable to either confirm or deny any collaboration between his company and Clubhouse.

Instead, Mr. Zhao highlighted Agora’s “virtual network” infrastructure. This network operates as an overlay on the public internet, utilizing over 200 strategically located data centers globally.

Agora employs sophisticated algorithms to manage traffic flow and optimize data routing. The company’s operational teams are primarily based in both China and the United States.

This distribution inevitably prompts inquiries regarding whether Clubhouse user data falls under the purview of Chinese regulations, a concern that the company itself acknowledged in its Initial Public Offering (IPO) prospectus.

The availability of real-time voice technology providers like Agora enables rapid and cost-effective development of Clubhouse-like applications, according to Herock. While direct replication of Clubhouse by Chinese entrepreneurs is considered unlikely due to regulatory hurdles and differing user preferences, a surge in alternative voice networking platforms is anticipated.

These new platforms will likely emerge as the initial excitement surrounding Clubhouse diminishes.

Agora’s Role in Real-Time Communication

Agora provides the core technology enabling Clubhouse’s real-time audio capabilities. Its virtual network is a key component of this functionality.

The company’s global data center network ensures low latency and reliable connections for users worldwide.

• Key Features of Agora’s Network:
• Over 200 co-located data centers.
• Advanced traffic planning algorithms.
• Optimized data routing.

The strategic placement of operations teams in both China and the U.S. is a significant aspect of Agora’s business model.