China Internet Video Industry Indepth Research and Investment Strategy Report, 2013-2017
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In 2010, the scale of internet video market in China reaches 3.14 billion Yuan and with a year-on-year growth of 78.4%. The improvement of advertisement income is the major driving force to promote the fast development of the whole industry while the increase of internet video users and browsing duration will upraise the advertisement value. With the improving copyright protection environment, the pay income will gradually increase. In the following three years, the market scale of internet video industry will maintain a growth rate of over 40%.
View from the aggregative index of revenue size, user number, and content resources, the video sharing suppliers, Youku and Tudou still lead the internet video market in China. Due to the heavy losses, Ku6 will change the former strategy of over-high spending in copyright purchasing and bandwidth construction. It plans to develop video information business. Other video sharing suppliers like 56.com, 6Rooms, and Baomihua.com major in video information and community video that the income need to share with users and advertising companies but the cost of content and bandwidth is relatively low.
In the field of non-sharing video play, due to the leaping increase of copyright distributing income, the letv.com with the sales revenue of 104.752 million Yuan that the year-on-year growth is 131.99%, and a net profit of 29.0642 million Yuan that the year-on-year growth is 83.75% in the first season of 2011. The iQIYI.COM major in legal long video business that the cost of bandwidth and content is high and at a loss. The joy.cn with the sales revenue of 0.2 billion Yuan and membership fee income of about 0.16 billion Yuan in 2010.
In the field of P2P streaming media, the income of Thunder’s video advertisement is more than the download business. It is profitable in 2009. In the first season of 2011, the bandwidth cost is 14.93 million Yuan with a year-on-year growth of 104.0%; the content cost is 91.44 million Yuan with a year-on-year growth of 142.9%. PPTV, PPStream, and UUSee are three major suppliers in the field of P2P streaming media. The sales revenue in 2010 is nearly hundred million Yuan. The content cost is about tens of millions or even more than hundred million while the bandwidth cost is about 5% of the video sharing networks.
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