Market Insights Advertising & Media Media TV & Video

OTT Video - China

China

In China, revenue in the OTT Video market market is projected to reach €71.03bn in 2024.
Revenue is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 6.96%, leading to a projected market volume of €99.43bn by 2029.
The largest market within this market in China is OTT Video Advertising, which is expected to have a market volume of €49.60bn in 2024.
In a global context, the highest revenue is forecasted to be generated the United States, amounting to €124,000.00m in 2024.
Within China's OTT Video market market, the user base is expected to reach 1,270.0m users by 2029.
User penetration is projected to be 65.6% in 2024 and is estimated to increase to 89.1% by 2029.
The average revenue per user (ARPU) in China's OTT Video market market is projected to be €75.53 in 2024.
In China, the OTT video market is experiencing rapid growth, driven by increasing demand for localized content and innovative streaming technologies.

Key regions: United Kingdom, Germany, Asia, South Korea, Japan

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Analyst Opinion

The OTT Video market in China has been experiencing significant growth in recent years.

Customer preferences: Chinese consumers have shown a strong preference for OTT video services due to their convenience and affordability. With the rise of smartphones and high-speed internet connectivity, consumers are increasingly turning to online platforms for their entertainment needs. OTT video services offer a wide range of content options, including movies, TV shows, and live streaming, catering to the diverse tastes and preferences of Chinese consumers.

Trends in the market: One of the key trends in the OTT Video market in China is the increasing popularity of local content. Chinese consumers have a strong appetite for domestic movies and TV shows, which has driven the growth of local OTT platforms. These platforms have been investing heavily in producing original content to attract viewers and differentiate themselves from international competitors. Additionally, there has been a surge in the popularity of short-form video platforms, which offer bite-sized content that can be easily consumed on mobile devices.

Local special circumstances: China's strict censorship regulations have had a significant impact on the OTT Video market. Foreign content providers are required to comply with these regulations, which often involve editing or removing content that is deemed sensitive or inappropriate. This has given local OTT platforms an advantage, as they are better positioned to navigate the regulatory landscape and offer content that is tailored to Chinese audiences. Furthermore, the Chinese government has been actively promoting the development of the domestic OTT industry as part of its broader cultural initiatives.

Underlying macroeconomic factors: China's large population and growing middle class have contributed to the growth of the OTT Video market. As more people gain access to the internet and disposable income increases, the demand for online entertainment services is expected to continue rising. Moreover, the COVID-19 pandemic has accelerated the adoption of digital technologies, including OTT video, as people spent more time at home and sought alternative sources of entertainment. This has further boosted the growth of the OTT Video market in China. In conclusion, the OTT Video market in China is experiencing rapid growth due to customer preferences for convenience and affordability, the increasing popularity of local content, the impact of censorship regulations, and underlying macroeconomic factors such as the country's large population and growing middle class. As the market continues to evolve, it is expected that local OTT platforms will continue to dominate the industry while catering to the diverse tastes and preferences of Chinese consumers.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on Traditional TV & Home Video and OTT (over-the-top) Services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective segment. This spending factors in discounts, margins, and taxes.

Modeling approach / Segment size:

The segment size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, number of internet users, and internet consumption.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant segment. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.