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China Online Video Market Report for 2013

China Internet Watch Jan 8, 2014

Market Overview ………………………………3 China Online Video Market Yearly and Quarterly Data …………………………………5 Chinese Netizens Online Video Watching Behavior Analysis ……………………………9

TABLE OF CONTENTS:

China online video market had been

growing fast in recent years.

In 2012, China online video market reached 8.96 billion

yuan (USD 1.47 billion), with 42.8% YoY increase.

In Q2 2013, China online video market reached 3.04

billion yuan (USD 497.26 million), with 37.8% YoY

increase and 38.1% QoQ increase. The growing in Q2

2013 was mainly driven by advertising revenue due to

advertisers increase.

Market Segment Revenue

In 2012, a large part of China online video revenue

iResearch recently published

China online video industry

report from 2012-2013

CHAPTER 1: Market Overview

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was from advertising, accounted for 73.2%. In Q2 2013,

advertising revenue accounted for 77.7% of online

video industry, with 4.1% QoQ increase.

In 2012, copyright licensing revenue accounted for

11.3%, dropped 1.8% compared to 2011. In Q2 2013,

copyright licensing revenue accounted for 9.3%,

dropped 6.7% compared to that of 2012.

User Data

In June 2013, online video app monthly user

coverage reached 130 million, increasing 64%

compared to August 2012. PC-end monthly user

coverage in June 2013 was 460 million, merely

growing 3.7% compared to August 2012.

In June 2013, online video effective using time in

mobile end accounted for 11.8%, 7.4% higher than

that of August 2012.

CHINA ONLINE VIDEO MARKET REPORT FOR 2013

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VISUAL HERE

In 2012, China online video market reached 8.96

billion yuan (USD 1.47 billion), with 42.8% YoY increase.

It slowed down compared to 2011’s 100.1% growth

rate.

There were two reasons why China online video

market slowed down in 2012. First, Chinese online

video enterprises became more reasonable towards

CHAPTER 2: China Online Video Market Yearly and Quarterly Data

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copyright license purchase. In 2011, these enterprises

showed great enthusiasm for copyright license,

therefore, the price for video content copyright

soared. In 2012, the price dropped accordingly.

Second, in 2010 and 2011, the development of online

games boosted some online video enterprises who

operated online games on their sites.

CHINA ONLINE VIDEO MARKET REPORT FOR 2013

In Q2 2013, China online video market reached 3.04

billion yuan (USD 497.26 million), with 37.8% YoY

increase and 38.1% QoQ increase. The growing in Q2

2013 was mainly driven by advertising revenue due to

advertisers increase. With the popularity of

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CHINA ONLINE VIDEO MARKET REPORT FOR 2013

In 2012, a large part of China online video revenue

was from advertising, accounted for 73.2%. In 2012,

copyright licensing revenue accounted for 11.3%.

In the future, the market share of online video

revenue would remain stable.

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Advertising Revenue Accounted for 70% in 2012

smartphone, netizens gradually transferred from PC-

end to mobile end and mobile video became the

focus strategy of many video enterprises.

CHINA ONLINE VIDEO MARKET REPORT FOR 2013

In Q2 2013, advertising revenue accounted for 77.7%

of online video industry, with 4.1% QoQ increase.

Copyright licensing revenue accounted for 9.3% in

Q2 2013, with 6.7% YoY drop.

The reasons for the dropping of copyright licensing

were: first, online video industry experienced

integration, and video enterprises bargaining power

in copyright licensing increased; second, main video

enterprises increased input in user generated

content which in return slowed the growth of

copyright licensing revenue.

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Advertising was the Main Revenue, Copyright Licensing Percentage Dropped

Since January 2012, online video and search in PC-

end monthly user coverage took turns to lead, and

they were two biggest online services. In June 2013,

online video monthly user coverage reached 464.72

million and search monthly user coverage reached

456.85 million.

CHAPTER 3: Chinese Netizens Online Video Watching Behavior Analysis

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CHINA ONLINE VIDEO MARKET REPORT FOR 2013

In June 2013, online video monthly effective using time

accounted for 33.9%, 6.7% higher than that of June 2012. While

social network market share dropped from 27.1% in June 2012 to

18.2% in June 2013.

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Online Video Effective Using Time Accounted for 30%

CHINA ONLINE VIDEO MARKET REPORT FOR 2013

In June 2013, online video app monthly user coverage

reached 130 million, increasing 64% compared to

August 2012. PC-end monthly user coverage in June

2013 was 460 million, merely growing 3.7% compared to

August 2012.

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Online Video Mobile Penetration

Increased

Online video Mobile app/PC rate went up from 17.9% in

August 2012 to 28.3% in June 2013. The growing in mobile

end were due to three reasons. First, the popularity of

mobile devices (smartphone, tablet) kept growing.

Second, major online video enterprises had improved

mobile end watching experience. Third, mobile end

video catered to the needs of making use of fragmented

time.

Online video Mobile app/PC rate went up from 17.9% in August 2012 to 28.3% in June 2013.”

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CHINA ONLINE VIDEO MARKET REPORT FOR 2013

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