China online video market had been growing fast. In 2012, China online video market reached USD 1.47 billion, with 42.8% YoY increase. In Q2 2013, China online video market reached USD 497.26 million,with 37.8% YoY increase and 38.1% QoQ increase.

1. China Online Video
Market Report for 2013
REPLACE WITH IMAGE
China Internet Watch
Jan 8, 2014

2. TABLE OF CONTENTS:
Market Overview………………………………3
China Online Video Market Yearly and
Quarterly Data…………………………………5
Chinese Netizens Online Video Watching
Behavior Analysis ……………………………9

3. CHAPTER 1:
Market Overview
China online video market had been
growing fast in recent years.
iResearch recently published
China online video industry
report from 2012-2013
In 2012, China online video market reached 8.96 billion
yuan (USD 1.47 billion), with 42.8% YoY increase.
In Q2 2013, China online video market reached 3.04
billion yuan (USD 497.26 million), with 37.8% YoY
increase and 38.1% QoQ increase. The growing in Q2
2013 was mainly driven by advertising revenue due to
advertisers increase.
Market Segment Revenue
In 2012, a large part of China online video revenue
// Page 3

4. CHINA ONLINE VIDEO MARKET REPORT FOR 2013
was from advertising, accounted for 73.2%. In Q2 2013,
advertising revenue accounted for 77.7% of online
video industry, with 4.1% QoQ increase.
In 2012, copyright licensing revenue accounted for
11.3%, dropped 1.8% compared to 2011. In Q2 2013,
copyright licensing revenue accounted for 9.3%,
dropped 6.7% compared to that of 2012.
User Data
In June 2013, online video app monthly user
coverage reached 130 million, increasing 64%
compared to August 2012. PC-end monthly user
coverage in June 2013 was 460 million, merely
growing 3.7% compared to August 2012.
In June 2013, online video effective using time in
mobile end accounted for 11.8%, 7.4% higher than
that of August 2012.
// Page 4

5. CHAPTER 2:
China Online Video Market Yearly
and Quarterly Data
VISUAL HERE
In 2012, China online video market reached 8.96
billion yuan (USD 1.47 billion), with 42.8% YoY increase.
It slowed down compared to 2011’s 100.1% growth
rate.
There were two reasons why China online video
market slowed down in 2012. First, Chinese online
video enterprises became more reasonable towards
// Page 5

6. CHINA ONLINE VIDEO MARKET REPORT FOR 2013
copyright license purchase. In 2011, these enterprises
showed great enthusiasm for copyright license,
therefore, the price for video content copyright
soared. In 2012, the price dropped accordingly.
Second, in 2010 and 2011, the development of online
games boosted some online video enterprises who
operated online games on their sites.
In Q2 2013, China online video market reached 3.04
billion yuan (USD 497.26 million), with 37.8% YoY
increase and 38.1% QoQ increase. The growing in Q2
2013 was mainly driven by advertising revenue due to
advertisers increase. With the popularity of
// Page 6

7. CHINA ONLINE VIDEO MARKET REPORT FOR 2013
smartphone, netizens gradually transferred from PCend to mobile end and mobile video became the
focus strategy of many video enterprises.
Advertising Revenue Accounted for 70% in 2012
In 2012, a large part of China online video revenue
was from advertising, accounted for 73.2%. In 2012,
copyright licensing revenue accounted for 11.3%.
In the future, the market share of online video
revenue would remain stable.
// Page 7

8. CHINA ONLINE VIDEO MARKET REPORT FOR 2013
Advertising was the Main Revenue, Copyright
Licensing Percentage Dropped
In Q2 2013, advertising revenue accounted for 77.7%
of online video industry, with 4.1% QoQ increase.
Copyright licensing revenue accounted for 9.3% in
Q2 2013, with 6.7% YoY drop.
The reasons for the dropping of copyright licensing
were: first, online video industry experienced
integration, and video enterprises bargaining power
in copyright licensing increased; second, main video
enterprises increased input in user generated
content which in return slowed the growth of
copyright licensing revenue.
// Page 8

9. CHAPTER 3:
Chinese Netizens Online Video
Watching Behavior Analysis
Since January 2012, online video and search in PCend monthly user coverage took turns to lead, and
they were two biggest online services. In June 2013,
online video monthly user coverage reached 464.72
million and search monthly user coverage reached
456.85 million.
// Page 9

10. CHINA ONLINE VIDEO MARKET REPORT FOR 2013
Online Video Effective Using Time Accounted for 30%
In June 2013, online video monthly effective using time
accounted for 33.9%, 6.7% higher than that of June 2012. While
social network market share dropped from 27.1% in June 2012 to
18.2% in June 2013.
// Page 10

11. CHINA ONLINE VIDEO MARKET REPORT FOR 2013
Online Video Mobile Penetration
Increased
In June 2013, online video app monthly user coverage
reached 130 million, increasing 64% compared to
August 2012. PC-end monthly user coverage in June
2013 was 460 million, merely growing 3.7% compared to
August 2012.
// Page 11

12. CHINA ONLINE VIDEO MARKET REPORT FOR 2013
Online video Mobile
app/PC rate went up
from 17.9% in
August 2012 to
28.3% in June 2013.”
Online video Mobile app/PC rate went up from 17.9% in
August 2012 to 28.3% in June 2013. The growing in mobile
end were due to three reasons. First, the popularity of
mobile devices (smartphone, tablet) kept growing.
Second, major online video enterprises had improved
mobile end watching experience. Third, mobile end
video catered to the needs of making use of fragmented
time.
// Page 12

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