Tip or No Tip? That is the Question

Abstract

Online streaming brings in huge profits to the hosting platforms with the majority coming from tips given by the viewers. This research studied whether the split of tips between the streamer and the platform affects viewers’ willingness to tip, under the influences of income, incentives, winning probability and gender. An online survey was conducted, with 895 participants in China randomly assigned to one of two versions of the questions. In the Split version, the platform splits the tips with the streamer with an unknown exact ratio. In the All version, the streamers take all. The results of hypothesis testing over different scenarios highlight that contracts between streamers and platforms with tip sharing may damper the total tips streamers get. Female viewers are more generous in tipping. For all respondents, tip amounts increase with the income level, size of the incentive and probability of winning, but they are indifferent to the type of reward.

Keywords: Tips, Live/Online Streaming, Money Giving, Consumer Behavior, Virtual Gifts, Rewards