Three Pillar Industries Picking up Momentum 

 Pillar Industries

Internet news media, concentrating on high-quality contents, aiming for media integration and driven by technological innovation, is booming and winning popularity. AI writing, short video, animation and audio broadcast enrich news report; new channels for information dissemination have been established, such as social intercourse, interactive groups and e-commerce. China’s online news media hits 81.4% penetration with the number of internet users reaching 675 million, an increase of 4.5% compared with 2017. As native ads are increasingly integrated into users’ feeds, market size of digital advertising jumped 30% to 290.4 billion yuan and revenue in the news feed ads exceeds one hundred billion yuan.

The market size of China’s online game reaches 248 billion yuan, slowing down a little due to changes of the external situation. China’s online gaming industry takes the initiative to change, focusing on e-sports games, games featuring traditional Chinese style, serious games and aiming to explore overseas market. Another highlight is e-sports games which has drawn greater attention since domestic e-sports gradually becomes a professional competitive video gaming, events and clubs are developing, and the game is even added to official programme at Hangzhou 2022 Asian Games. E-sports is growing exponentially in the world and this adds strategic significance on China’s online gaming industry. Chinese online gaming companies are accelerating their efforts to expand abroad by improving products and channels. The overseas revenue amounted to 9.59 billion yuan, up by 15.8%.

The market size of China’s online video reaches 96.3 billion yuan, rising 32% compared to the prior year. Major drivers are advertising and content purchases. Companies promote their original content through online videos. Advertising revenue boosts 45.4 billion yuan, up by 26%, accounting for 47.1% of the overall market size. Subscription services are growing fast. By the end of last year, the number of paid-up members has been 230 million and market size of user-pay products has continued its meteoric rise to reach 35.5 billion yuan which managed 62.8% growth and accounts for 37% of the total.

May 21, 2019

Source: China IP Magazine

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