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Scarcity of Entertainment Programs on State-operated TV Will Drive the Video Streaming Market in China until 2020, Says Technavio
[June 01, 2016]

Scarcity of Entertainment Programs on State-operated TV Will Drive the Video Streaming Market in China until 2020, Says Technavio


According to the latest research study released by Technavio, the video streaming market in China is expected to expand at a CAGR of over 29% until 2020.

This research report titled 'Video Streaming Market in China 2016-2020', provides an in-depth analysis of market growth in terms of revenue and emerging market trends. To calculate the market size, Technavio researchers have considered revenues generated from advertisements, copyright distribution, value-added services, and others.

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"The mass-media in China is completely state-owned. The television industry in the country is characterized by a rigid framework of regulations monitored by the State Administration of Radio, Film, and Television (SARFT) under the Chinese government. SARFT, under strict adherence to the rules, controls program content and market trade," said Ujjwal Doshi, one of Technavio's lead analysts for media and entertainment research.

"These regulations have resulted in the scarcity of entertainment programs on TV and growth of independent TV production companies. Consumers in the world's largest economy are demanding access to quality entertainment, which is further opening up opportunities for independent production companies," added Ujjwal.





Video streaming market share in China by revenue 2015

 

 

Advertisement

 

76.61%

Copyright-redistribution

8.01%

Value added services

8.09%

Others

7.28%
 

Source (News - Alert): Technavio research

 

Video streaming market in China by advertisement revenue

The revenue generated in the video streaming market in China through advertisements is expected to grow at a CAGR of 30.12% in the 2015-2020 period. Revenue generation through advertisements is broadly divided into two categories: cost per thousand (CPM) and cost per click (CPC (News - Alert)). In the CPM method, the site owners charge according to the number of ads for a particular advertiser at a rate card price. Site owners also have the flexibility to use their in-house server or a third-party ad network service such as Google (News - Alert) AdSense. The majority of site owners prefer to use a third-party ad network service to avoid the hassles of owning a server.

CPC, on the other hand, is widely used in text ads and are similar to sponsored links within a search engine. Site owners charge the advertisers for not only the number of times their ads are displayed but also the number of times ads are clicked. However, these ads are delivered through a network of third-party sites.

Video streaming market in China by copyright distribution revenue

The revenue generated in the video streaming market in China through advertisements is expected to grow at a CAGR of 23.75% over the 2015-2020 period. The growing popularity of video streaming has led market players to consider different ways to make available more choice of videos to the users online. The preference is generally for watching the latest movies and television series online since it resolves the issue of finding storage space on computers. Thus, video streaming companies have started buying copyright from various production houses to expand the range of choices for users. Once the copyright is acquired, the movies and television series are offered either on pay per view or on a monthly subscription basis to make up for the investments made to buy the content.

Video streaming market in China by value-added service revenue

The revenue generated in the video streaming market in China through advertisements is expected to grow at a CAGR of 36.47% over the 2015-2020 period. A wide variety of additional services such as booking tickets for events, taxi on-demand, restaurant bookings, and many others are carried out using internet protocol television (IPTV (News - Alert)). IPTV is a system where television services are delivered through the internet. IPTV technology is also used to control lighting and air-conditioning through the TV and run anonymous customer satisfaction surveys. In addition, it is further used as a marketing tool. QQLive is a leading online interactive video platform in China that broadcasts programs of all major TV stations to consumers. The platform also provides consumers with access to HD films, TV soaps and dramas, sports, news, animation, variety shows, and on-demand video services.

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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