Impacts of “Outer Limit Order” on Online Video Industry in China - The Cases of Heyi Group and LeEco Group

China’s online video industry has been developing fast during these years, gradually changing its media landscape. Chinese government, however, carried out ‘Outer limit order’ in 2014, in order to control the import of oversea plays in online video industry, in terms of import amount, content examination, import procedure, and so on. ‘Outer limit order’ therefore is likely to influence the further development of its online video industry. This study adopts the SCP framework in industrial economics to systematically analyze the impacts of ‘Outer limit order’ on online video industry in China, including market structure, conduct and performance. It takes Heyi Group and LeEco Group as major cases, using methods of semi-structured interview and document analysis. According to the analysis, ‘Outer limit order’ has significantly influenced the market structure and conduct of the industry, but not its performance. Consequently, this policy has partly reached its goals of promoting local film and television industry and intensifying its content examination. Based n this study, future researchers may evaluate the policy’s long-term impacts on the industry.