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China online video market achieved 12.81 billion Yuan(USD 2.08 billion) with 41.9% YoY increase. The market was expected to maintain a rapid growth and reach 36.6 billion Yuan (USD 5.97 billion) in 2017.
In the coming years, as the mobile client commercialization deepens, copyright contents (TV dramas, variety shows and sporting events) are be introduced continuously, and user generation videos develop, online video market will keep a relative high growth, according to iResearch.
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The advertising revenue accounted for 75% of total revenue in 2013, ranked the first. The proportion was predicted to rise slightly to 77.1% in 2017.
Advertising is, and will be in recent years, the main way to monetize traffic due to the typical media attribute of online video. For now, high-quality hot dramas and variety shows guaranteed the advertising revenue, and contents such as animation and sporting events helped to boost the advertising profitability. Most mobile online video revenue came from advertising, while the revenue proportion of non-advertising ways to monetize the traffic were increasing, as a consequence of growing traffic and deeper commercialization.
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The monthly online video user coverage of PC webpage and PC client was 460 million and 340 million respectively in November 2013. The MoM growth of PC webpage user scale was 1.6%, lower than 6.7% of PC client. Generally, the user scale of online video on PC was steady, maintained a stable momentum.
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By November 2013, the user scale of mobile video app reached 170 million, up 72.9% compared with December 2012, showing a rapid growth. By November 2013, the ratio of mobile video app user to PC online video user was 37.1%, increased 15.6 percentage points from 21.5% by December 2012.
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During January to November 2013, TV dramas always took the most part of video effective length. The share fluctuated in small range but remained above 50%. The overall trend of variety shows was upward, with the increase from 9.6% by January 2013 to 13.5% by November 2013. Generally speaking, the content structure of video effective length kept stable.
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