DOCSLIB.ORG

Key Trends in China's Online Video Industry

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Key Trends in China's Online Video Industry KEY TRENDS IN CHINA’S ONLINE VIDEO INDUSTRY April 2021 1 ONLINE VIDEO PENETRATION APPROACHES 94% OF INTERNET USERS TRACKING INTERNET & ONLINE VIDEO USER TRENDS Penetration of Internet Users 94% 89% 62% 1,200 989 1,007 927 942 1,000 880 873 900 829 802 725 800 709 617 624 549 600 501 499 Total users (mil.) 400 200 0 2018 2019 2020 Q1 2021 Internet Users Online Video Users Short Video Users Livestreaming Users Source: Company data, Media Partners Asia 2 SHORT VIDEO DRIVING CONSUMPTION SHARE OF VIDEO USER TIME SPENT 100% 9% 9% 22% 19% 20% 3% 3% 90% 24% 3% 3% 3% 3% 2% 80% 2% 3% 2% 3% 3% 8% 8% 4% 2% 5% 10% 9% 70% 13% 8% 9% 12% 4% 5% 60% 15% 66% Of 24% 12% 50% 23% 27% 27% Streaming Time 19% Spent On Top 3 40% 20% Short Video 30% 27% 28% 15% Platforms 20% 33% 34% % of Online Video Time Spent Time Video Online of % 26% 14% 10% 9% 15% 0% 1% 0% 2016 2017 2018 2019 2020 Q1 2021 Douyin Kuaishou WeChat Channel Video iQIYI Tencent Video Youku Mango TV Bilibili Others Source: Company data, Media Partners Asia 3 RATE INCREASES SUPPORT SVOD ARPUS, MORE UPSIDE ON AD ARPUS MONTHLY ARPU PER DAU (KEY DIGITAL COMPANIES) ADVERTISING REVENUE PER DAU (KEY VIDEO PLATFORMS) 35 70 30 60 Ad monetization per DAU for most video platforms Platforms such as Bilibili 25 50 is still fairly low, but and WeChat Channel Video upside may be limited due still significantly 40 20 to slowing industry undermonetized US$ US$ 65.1 growth 15 Recent rate hikes led 30 by iQIYI and Tencent Low monthly ARPU implies upside 21.6 10 Video on membership fees for most 20 Chinese platforms Average 5 10 20.4 7.5 12.3 11.8 10.9 10.7 4.9 6.8 3.8 2.9 2.8 2.5 0 1.0 0 Alibaba Tencent Baidu iQIYI Bilibili Kuaishou Weibo Douyin Youku Mango Kuaishou iQIYI Tencent Bilibili WeChat TV Video Channel Note: Video 1) Monthly ARPU reflects consumer spend, and excludes advertising. 2) ARPU for Alibaba, Tencent, and Baidu reflects total consumer spend across all digital segments. 3) ARPU for Bilibili, and Kuaishou includes livestreaming (virtual gifts). 4 Source: Company data, Media Partners Asia SVOD TO CAPTURE 77% OF INCREMENTAL ONLINE VIDEO INDUSTRY REVENUE SVOD (Consumer Spend) Incremental Online Video 77% Revenue (2020-25): US$8.4 bil. AVOD (Advertising) 23% ONLINE VIDEO REVENUE TRENDS 30 CAGR 23.8 24.9 (2020-25) 22.2 Overall: 9% 25 20.4 18.5 20 16.5 . AVOD: 5% bil 15 US$ 10 5 SVOD: 11% 0 2020 2021 2022 2023 2024 2025 Subscription Advertising 5 * SVOD includes internet TV | Source: Media Partners Asia RISING BIG SCREEN CONSUMPTION DRIVES INDUSTRY GROWTH +25% Y/Y >40% Y/Y ~10% of TV ~250 mil. ~5 hours average Short Video Apps viewers access SVOD / Internet TV active smart daily time spent on Integration short videos on TV terminals smart TV smart TV Ultimate hub of full array of video formats Key Drivers For Long Form Centric Platforms: Key Drivers For Short Form Centric Platforms: -ARPU increase as more households choose 4K / 8K VR / AR to subscribe internet TV packs (typically -Expands reach onto non-conventional screens priced 3-4x mobile plans). with new user cases. -New advertising formats on smart TV -New content focus adapted for household screens. viewing, i.e. short-to-mid form, educational, UHD Upgrade 5G Integration games, home-shopping, and infotainment. 6 ABOUT US Established in 2001, Media Partners Asia (MPA) is the leading independent provider of research, advisory and consulting services across the media and telecoms sectors in Asia Pacific. MPA provides definitive reports with proprietary industry models and forecasts. Our reports are widely used and sourced by local, regional and global companies for business planning, market strategy and capital market transactions. MPA advisory and consulting services help clients enter new markets and acquire businesses with our team providing commercial due diligence, customized research and strategy recommendations. We offer customized services to guide strategic planning and business development activities and support the launch of new products and services. We also provide independent consultant (IC) industry analysis and benchmarking for equity and debt offerings, including IPOs for broadcasting, digital media and telecommunications companies in Asia Pacific. Our offering includes AMPD, a research platform measuring consumer behavior across the digital economy, including online video and gaming. The service provides unparalleled access to data, case studies and strategies for business planning, marketing, and programming. CONTACT: Adrian Tong, Senior Analyst | [email protected] 7.
Load more

Recommended publications
  • Joint Action Against Online Video Piracy in China
    November 13, 2013 Joint Action Against Online Video Piracy in China Lawsuits Seeking RMB300 Million in Damages Filed Against Baidu and QVOD on Claims of Spreading Pirated Videos and Engaging in Hotlinking BEIJING, Nov. 13, 2013 /PRNewswire/ -- Youku Tudou, Sohu Video, Tencent Video, LeTV, MPA, the Motion Picture Association of America (MPAA), CODA, Wanda Films, Enlight Media, Letv Films announce a joint declaration today in Beijing to fight online video infringement and piracy both on PC and mobile Internet in China. Meanwhile, the joint action announces legal action has been taken against Baidu and QVOD for compensation as high as RMB300 million. Representatives from more than a dozen Chinese and international film and television production companies attended the joint action announcement in Beijing. International attendees included the Motion Picture Association of America, Sony Pictures Entertainment, Warner Brothers, Disney and Paramount. Chinese attendees included the Capital Copyright Industry Alliance Capital Protection Division, the China Radio and Television Association of the Television Production Committee, and many Chinese production companies. "Since 2009, the video industry is facing a more severe anti-piracy situation," Sohu Group Chairman and CEO Charles Zhang said. "Especially when those big Internet companies with resource advantages participate in large-scale piracy. We cannot keep competing because where thieves and robbers are having their way, law-abiding companies cannot survive. We may even have to exit online video industry if such practices continue. Nobody will invest in content, and China's online video industry will face the sad situation as the music industry, which has already been destroyed by piracy, had faced before.
    [Show full text]
  • Ipo Analysis
    IPO ANALYSIS Zscaler Research on potential upcoming IPOs from Bilibili Spotify selected candidate companies. March 2018 VentureDeal Zscaler Files Terms For $110 Million IPO Quick Take Zscaler (ZS) intends to raise $110 million in a U.S. IPO, according to an amended S-1/A regulatory filing. The company has developed a suite of cloud security software offerings for the enterprise market. ZS management is proposing to price the IPO at a rich valuation and without demonstrating a path to profitability. My opinion is to AVOID the IPO at the current price. Perhaps institutional buyers will persuade management of their excessive valuation expectations. Alternatively, if the IPO fizzles, interested investors may be able to pick up a bargain post-IPO. Company Recap San Jose, California-based Zscaler was founded in 2007 to offer a range of internet and hybrid security capabilities to businesses of all sizes. Management is headed by co-founder and CEO Jay Chaudhry, who was previously Chief Strategy Officer at Secure Computing and founder & CEO of CipherTrust. The company has developed a robust partner network for both referrals & resellers and internet service providers. Investors have funded $148 million in several rounds and include TPG Capital (8.7% pre-IPO). CEO Chaudhry and affiliates own 54.3% of company stock pre-IPO. Technology Zscaler has created a suite of cloud security solutions in the following categories: Zscaler Internet Access • Secure Web Gateway • Cloud Firewall • Cloud Sandbox • Bandwidth Control • Data Loss Prevention Zscaler Private Access • For Amazon Web Services (AMZN) • For Microsoft Azure (MSFT) Zscaler Platform • Cloud Architecture • SSL Inspection • Data Privacy & Security • Zscaler App Below is a brief company promotional video: (Source:Zscaler) Market According to a December 2017 Gartnermarket research report, it forecasted that global security technology spending would reach $96 billion in 2018, representing an increase of 8% over 2017.
    [Show full text]
  • Birth and Evolution of Korean Reality Show Formats
    Georgia State University ScholarWorks @ Georgia State University Film, Media & Theatre Dissertations School of Film, Media & Theatre Spring 5-6-2019 Dynamics of a Periphery TV Industry: Birth and Evolution of Korean Reality Show Formats Soo keung Jung [email protected] Follow this and additional works at: https://scholarworks.gsu.edu/fmt_dissertations Recommended Citation Jung, Soo keung, "Dynamics of a Periphery TV Industry: Birth and Evolution of Korean Reality Show Formats." Dissertation, Georgia State University, 2019. https://scholarworks.gsu.edu/fmt_dissertations/7 This Dissertation is brought to you for free and open access by the School of Film, Media & Theatre at ScholarWorks @ Georgia State University. It has been accepted for inclusion in Film, Media & Theatre Dissertations by an authorized administrator of ScholarWorks @ Georgia State University. For more information, please contact [email protected]. DYNAMICS OF A PERIPHERY TV INDUSTRY: BIRTH AND EVOLUTION OF KOREAN REALITY SHOW FORMATS by SOOKEUNG JUNG Under the Direction of Ethan Tussey and Sharon Shahaf, PhD ABSTRACT Television format, a tradable program package, has allowed Korean television the new opportunity to be recognized globally. The booming transnational production of Korean reality formats have transformed the production culture, aesthetics and structure of the local television. This study, using a historical and practical approach to the evolution of the Korean reality formats, examines the dynamic relations between producer, industry and text in the
    [Show full text]
  • Eone Annual Report 2019
    2019 Annual Report and Accounts Unlocking the power & value of creativity We are focused on building the leading talent-driven, platform- agnostic entertainment company in the world. Through our deep creative relationships we are able to produce the highest quality content for the world’s markets. We are powered by global reach, scale and local market knowledge to generate maximum value for this content. Strategic Report SR Governance G Financial Statements FS Unlocking the Unlocking the value of originality power & value p.10 of creativity Unlocking the power of creativity p.12 Strategic report Governance 02 At a glance 66 Corporate governance 04 Chairman’s statement 68 Board of Directors 06 Chief Executive Officer’s review 70 Corporate governance report 10 Unlocking the power 78 Audit Committee report & value of creativity Unlocking the 86 Nomination Committee report value of direction 20 Market Review 90 Directors’ Remuneration report p.14 22 Business Model 118 Directors’ report: 24 Strategy additional information 26 Key performance indicators Financial statements Business review 122 Independent auditor’s report 28 Family & Brands 127 Consolidated financial statements 36 Film, Television & Music 131 Notes to the consolidated financial statements Unlocking the 46 Finance review power of storytelling 51 Principal risks and uncertainties Visit our website: entertainmentone.com p.16 58 Corporate responsibility Unlocking the value of talent p.18 entertainmentone.com 1 AT A GLANCE Performance highlights Strong growth in underlying EBITDA
    [Show full text]
  • Analysis and Discussion on the Network Self Made Drama Under the Network Platform
    Analysis and Discussion on the Network Self Made Drama under the Network Platform Xiaoxia LI Zibo Vocational Institute Abstract: In recent years, with the continuous deepening of the integration of Internet and film and television creation, China has entered the online drama world spawned by the “Internet”. In the development trend of online drama, self-made content has become the foundation of every major platform. In 2020, the network self-made drama will be stable and new. Under the benign situation of stable development, it will move towards higher quality and broader stage. Keywords: Network; Platform; Homemade drama; Film and television DOI: 10.47297/wspciWSP2516-252708.20200409 1. The Rise of Self-made Drama in the Network Video Platform (1) The characteristics of network communication and the platform advantage of mastering the front market data, the network self-made drama has high interaction and market sensitivity. (2) Behind the rise of the network self-made drama is the network video platform that is eager for more control. n the increasingly fierce and cruel competition of “film and television winter”, Ithe network self-made drama makes these online video platforms escape the copyright purchase cost of the sky price, and change from passive content competition to active participation in content production, and become the core of platform differentiation competition. At the same time, this benign change also contains the vision of the film and television industry to reshape the content ecology. About the author: Xiaoxia LI (1978-02), female, from Zibo City, Shandong Province, master, lecturer, engaged in computer applications, network big data and artificial intelli- gence.
    [Show full text]
  • State of Mobile 2020
    1 1 2 0 2 0 S T A T E O F M O B I L E Executive Summary 204B $120B 3.7 Hrs 825% 60% Worldwide Downloads Worldwide App Store Per day spent in mobile Higher avg IPO Higher per user in 2019 Consumer Spend by the average user valuation for mobile engagement in 2019 in 2019 companies in 2019 by Gen Z vs older demos in 2019 2 State of Mobile | Copyright 2020 | App Annie Table of Contents ● Macro Mobile Trends 5 ● Gaming 13 ● Finance 22 ● Retail 27 ● Streaming 32 ● Social 36 ● Other Industries Embracing Mobile Transformation 40 ● Worldwide Rankings 45 3 State of Mobile | Copyright 2020 | App Annie The Mobile Performance Standard Through our mobile data and insights platform, we help create winning mobile experiences for those aspiring to achieve excellence 4 State of Mobile | Copyright 2020 | App Annie MACRO MOBILE TRENDS Top Countries by App Store Downloads Consumers Downloaded a Record 120B 240B 100B 200B Growth From 2016 to 2019 204 Billion Apps Worldwide Downloads Worldwide 80B 160B ● Annual worldwide downloads have grown 45% in — Worldwide 45% the 3 years since 2016 and 6% year over year, — China 80% 60B 120B which is particularly impressive given this excludes — India 190% re-installs and app updates. — United States 5% 40B 80B — Brazil 40% ● Downloads are largely fueled by emerging Country-Level Downloads Country-Level markets, including India, Brazil and Indonesia. — Indonesia 70% 20B 40B ● Consumers in mature markets like the US, Japan and Korea have seen download growth level off, 0B 0B but are still seeking out new apps.
    [Show full text]
  • Read the Report
    23 Dec 2020 CMB International Securities | Equity Research | Company Initiation iQIYI (IQ US) BUY (Initiation) China’s online Disney in the making Target Price US$23.2 Up/Downside +34.8% Current Price US$17.2 We keep positive on IQIYI’s long-term subs trend and margin improvement , backed by its sizable users, unique original content and valuable IP. We forecast iQIYI to deliver 11% revenue CAGR during FY20-22E, with subs price hike and China Internet Sector ads recovery. Given fundraising partly priced in, we think iQIYI’s valuation is attractive. Initiate with BUY with DCF-based TP US$23.2. Sophie Huang An online video leader: Not only “Netflix”, but more. iQIYI is a leading (852) 3900 0889 online video platform in China, with 105mn subs. Backed by its sizable users, [email protected] vibrant original content and IP reserve, we forecast iQIYI to deliver 11% rev CAGR in FY20-22E, with subs price hike, ads recovery, and user expansion. Miriam Lu (852) 3761 8728 Original content makes the difference. With online video industry growth [email protected] tapering off, we believe content matters more to users than traffic or subsidies. iQIYI exceled itself with exclusive original content in both popular dramas and variety shows. Moreover, it bore initial fruits from short-episode dramas (e.g. Stock Data Mkt Cap (US$ mn) 13,499 the popularity of The Bad Kids <隐秘的角落>), and would further enrich Light Avg 3 mths t/o (US$ mn) 180.41 on Series (迷雾剧场) with stronger pipeline. We expect short-episode dramas 52w High/Low (US$) 28.03/ 14.51 series to stimulate its subs & brand ads momentum with higher ROI, such as Total Issued Shares (mn) 373 Who is Murderer<谁是凶手> in 2021 pipeline.
    [Show full text]
  • Bilibili Inc
    UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of March 2021 Commission File Number: 001-38429 Bilibili Inc. Building 3, Guozheng Center, No. 485 Zhengli Road Yangpu District, Shanghai, 200433 People’s Republic of China (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐ Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐ Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐ INCORPORATION BY REFERENCE Exhibit 99.1 and exhibit 23.1 to this current report on Form 6-K are incorporated by reference into the registration statement on Form F-3 of Bilibili Inc. (File No. 333-230660) and Form S-8 (No. 333-226216), and shall be a part thereof from the date on which this report is furnished, to the extent not superseded by documents or reports subsequently filed or furnished. EXHIBITS Exhibit 23.1 Consent of Shanghai iResearch Co., Ltd. Exhibit 99.1 Bilibili Inc. Supplemental and Updated Disclosures SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
    [Show full text]
  • From Western TV Sets to Chinese Online Streaming Services: English-Language TV Series in Mainland China
    . Volume 16, Issue 2 November 2019 From Western TV sets to Chinese online streaming services: English-language TV series in mainland China Xiaoran Zhang, University of Nottingham, UK Abstract: In the age of multiple screens, online streaming has in the 2010s become the most significant way of consuming overseas television programs in Mainland China. Due to rather strict government policy and censorship, foreign television series are presently only legally distributed and circulated on licensed online streaming services. Focusing on the streaming of US/UK TV series, this paper examines online streaming services’ distribution activities in order to understand both streaming websites’ business practices surrounding transnational TV and the features they employ to cater to online audiences for these series. To grasp how the online distribution of English-language TV series operates in China, I begin by looking at China’s five major video streaming services, analyzing the design of their interfaces, scheduling of programs, and accessibility for different tiers of users. I then examine how streaming services use social media as a major tool to promote their US and UK TV series. Through this analysis, I argue that transnational TV flow has had to be localized to achieve distribution and marketing goals in a Chinese context, resulting in the uniqueness of these streaming practices. This article concludes that, with the development of online streaming technologies, distinctive modes of audience consumption in China have informed the localization of this specific transnational TV content. Keywords: Online streaming, streaming consumption, television distribution, transnational TV, Tencent Video, HBO, Game of Thrones Introduction As one of HBO’s most successful high-end shows, Game of Thrones (2011-) has earned a worldwide reputation that includes the fandom of Chinese viewers.
    [Show full text]
  • Most Recent Chinese 'Ad Block' Judgment Affirms Ad-Based Revenue Model for Internet Businesses 13 November 2015
    Most recent Chinese 'ad block' judgment affirms ad-based revenue model for Internet businesses 13 November 2015 On 14 October 2015, a local court in Shanghai adopted the The judgment latest in a series of judgments on the legality of software and On the ad block claim, the Shanghai court held that the VST other technical measures that block or skip advertisements on software had decrypted iQiyi's security key codes so that digital platforms. iQiyi's servers mistakenly took VST's access requests as In its judgment, the Shanghai Yangpu District People's Court coming from iQiyi's own platform. Through this approach, the found that Juwangshi Technology Corporation ("Juwangshi"), court found, the VST software was able to directly displaying a video streaming service aggregator, had breached anti- iQiyi's videos without the ads, which had the same effect as unfair competition rules by utilizing certain decryption explicit "ad blocking." The court pointed out that Juwangshi's measures to block ads while displaying videos streamed from ad blocking conduct was able to attract users who neither iQiyi, one of China's main online video sites. The judgment want to watch ads nor pay for iQiyi membership, which in turn also addressed the issue of online businesses "scraping reduces iQiyi's revenues. content" (i.e., using information) from other websites. On this point, the Shanghai court judgment is consistent with Background to the case a series of "ad block" judgments by various Chinese courts in the last two years. For example, in a judgment at the end of The plaintiff in this case was iQiyi, which streams video July 2015, the Beijing Shijingshan District People's Court programs for free but has ads embedded at the beginning of found Hualu Tianwei, also an online video aggregation the programs.
    [Show full text]
  • Tencent Announces 2017 Fourth Quarter and Annual Results
    For Immediate Release TENCENT ANNOUNCES 2017 FOURTH QUARTER AND ANNUAL RESULTS Hong Kong, March 21, 2018 – Tencent Holdings Limited (“Tencent” or the “Company”, 00700.HK), a leading provider of Internet value added services in China, today announced the unaudited consolidated results for the fourth quarter of 2017 (“4Q2017”) and audited consolidated results for the year ended December 31, 2017 (“FY2017”). FY2017 Key Highlights Revenues: +56% YoY, non-GAAP Profit attributable to equity holders of the Company: +43% YoY . Total revenues were RMB237,760 million (USD36,387 million1), an increase of 56% over the year ended December 31, 2016 (“YoY”). Operating profit was RMB90,302 million (USD13,820 million), an increase of 61% YoY. Operating margin was 38%, up from 37% last year. Profit for the year was RMB72,471 million (USD11,091 million), an increase of 75% YoY. Net margin increased to 30% from 27% last year. Profit attributable to equity holders of the Company for the year was RMB71,510 million (USD10,944 million), an increase of 74% YoY. Basic earnings per share were RMB7.598. Diluted earnings per share were RMB7.499. On a non-GAAP2 basis, which excludes certain non-cash items and certain impact of M&A transactions: - Operating profit was RMB82,023 million (USD12,553 million), an increase of 41% YoY. Operating margin decreased to 34% from 38% last year. - Profit for the year was RMB66,404 million (USD10,163 million), an increase of 44% YoY. Net margin decreased to 28% from 30% last year. - Profit attributable to equity holders of the Company for the year was RMB65,126 million (USD9,967 million), an increase of 43% YoY.
    [Show full text]
  • (12) Patent Application Publication (10) Pub. No.: US 2017/0142454 A1 JANG (43) Pub
    US 201701 42454A1 (19) United States (12) Patent Application Publication (10) Pub. No.: US 2017/0142454 A1 JANG (43) Pub. Date: May 18, 2017 (54) THIRD-PARTY VIDEO PUSHING METHOD Publication Classification AND SYSTEM (51) Int. Cl. (71) Applicants: LE HOLDINGS (BEIJING) CO., H04N 2L/237 (2006.01) LTD., Beijing- - - (CN); LECLOUD H04N 2L/2582L/23 (2006.01) COMPUTING CO.,LTD., Beijing (CN) (52) U.S. Cl. CPC ..... H04N 21/237 (2013.01); H04N 21/25816 (72) Inventor: Yuhan JIANG, Beijing (CN) (2013.01); H04N 21/23109 (2013.01) (73) Assignees: LE HOLDINGS (BEIJING) CO., (57) ABSTRACT LTD., Beijing (CN); LECLOUD Disclosed are a method and system for pushing video to a COMPUTING CO.,LTD., Beijing third party, the method including: receiving a video request (CN) instruction from a third party, the video request instruction including third-party identification authentication informa (21) Appl. No.: 15/252,252 tion and third-party video stream identification information; retrieving a prestored list of local video streams correspond (22) Filed: Aug. 31, 2016 ing to a third party ID according to the third-party identifi cation ID authentication information; determining a video O O stream to be pushed by comparing the third-party video Related U.S. Application Data stream identification information with local video stream (63) Continuation of application No. PCT/CN2016/ configuration information in the list of local video streams; 083022, filed on May 23, 2016. pushing the video stream to be pushed to the third party. Sharing of different video streams between different video (30) Foreign Application Priority Data platforms is implemented by presetting a video stream matching list in a server, and a response to a video request Nov.
    [Show full text]