The document discusses the explosive growth of sports in China across 5 key areas: 1) Digital platforms like WeChat and Weibo are hugely popular among sports fans in China and are innovating features like live streaming. 2) Paywalls for premium sports content on IPTV platforms are becoming established with fans increasingly willing to pay for subscriptions. 3) Billions of dollars have been invested in domestic sports through government initiatives and private funds, as well as in overseas clubs and leagues. 4) The Chinese Super League has seen rapid growth and is outspending foreign leagues on transfers, while working to expand its international reach. 5) Chinese fans take great national pride in their domestic teams and athletes

1. A GUIDE TO THE
EXPLOSIVE GROWTH
OF SPORTS IN CHINA
2016

2. THE 5 KEY AREAS
DIGITAL
THE PAYWALL
NATIONAL PRIDE
CHINESE SUPER LEAGUE
INVESTMENT
01
02
03
04
05

3. 01 DIGITAL

4. 01 DIGITAL
WeChat is the fastest growing social media platform in
the world, gaining 150 million monthly active users this
year alone.
However, it is so much more than just a social media
network.
It effectively combines Facebook, Uber, Foursquare,
PayPal, WhatsApp, Skype and many more.
Additionally, constant innovation sees them roll out new
features every month which perfectly integrate
themselves into the lives of Chinese consumers.
Weibo has gained 70 million MAUs this year, over the
same time period, Twitter has lost 3 million users.
It also now boasts more mobile users than Twitter.
It’s still the number 1 platform in China for breaking
news and viral content; and it’s where sports fans go to
first.
Records are broken regularly: most recently Kobe
Bryant’s #KB20# hashtag went viral during his final
game, reaching 1 billion reads, a first in China.
2016 OVERVIEW

5. Mobile live streaming. Now anyone can build a video
audience through their phone.
With 200 new apps and a combined user base of more
than 300 million, it is the latest digital trend in China.
Chinese platforms are leading the worldwide revolution
in terms of functionality, innovation and active users.
The three leading platforms are: Penguin, Yizhibo and
Inke.
Appetite for live streaming in China is huge.
App downloads increased 4 fold in the first half of
2016.
Sports bands and talent have begun to tap into this
market.
Following his final Olympic gold medal, Michael Phelps
was able to attract 500,000 live viewers at 6 am in
China.
Platforms have also begun to integrate social payment
and social gifting, meaning that live streaming is
becoming a viable revenue opportunity.
Kobe Bryant recently featured in his first live stream and
raised over $12,000 for the Kobe Bryant China Fund
from the 5.8 million viewers.
01 DIGITAL
WHAT’S NEW

6. 02 THE PAYWALL

7. There has been a lot of development in sports
subscription models over the last year.
This has come through a combined effort from all of the
major Chinese IPTV broadcasters.
Premium sports content is now behind the paywall and
although development is sure to continue, the era of
the paywall has begun in China.
02 THE PAYWALL
The first NBA model with Tencent provided one fixed
fee, season long subscription to access content.
For the 2016/17 season, Tencent now provide several
personalised options, including one-club-only
packages and short term subscription options.
The NBA on-demand League Pass has also, finally,
been made available, giving fans ultimate viewing
flexibility.
In 2015, the big question was:
WHEN WILL FANS START PAYING FOR CONTENT?

8. Evidence shows that Chinese sports fans are now
coming to terms with paying for content.
The first game of the 2015-16 Premier League season
had around 500,000 paid viewers.
Fast forward 12 months, and there were over 8 million
paid viewers for the same fixture of the current season.
Various networks have stated that their focus is now
shifting from the rights acquisition race to honing their
products and subscription platforms.
That said, don’t expect spending to stop.
Once broadcasters identify the most popular content
and how best to structure the platforms, bidding will
only get more intense.
02 THE PAYWALL

9. 03 INVESTMENT

10. 03 INVESTMENT
INTERNAL
Two years ago, President Xi rolled out his ’50 point
plan’.
At the time, China’s sports industry was about 0.63%
of the countries GDP.
To put that in perspective, most Western countries are
at around 2-3%.
Since then, a multitude of sports funds dedicated to
growing the domestic industry have emerged.
If we look at just the top 8, investment has topped $2.3
billion over the past 4 years across 247 sports deals.
More impressive still is that of that, $1.6 billion was
invested in just the first half of 2016.
The targets include: 100 million active children under 6,
growing sport in China to a $1 trillion industry and
getting 50 million people playing football by 2025.
“The money going in and out of China has dominated
..headlines worldwide more than any other area”
David Hornby, Head of Sport

11. 03 INVESTMENT
In the last two years, over $2 billion have been invested
into European football clubs.
This was triggered by Wanda’s acquisition of Atletico
Madrid, and has ranged from major clubs like Inter
Milan to minor teams, like Wolverhampton Wanderers.
EXTERNAL
Investments have also been made in Basketball
through the Minnesota Timberwolves and sports
agency MP & Silva.
The two biggest International football tournaments, the
FIFA World Cup and UEFA European Championships
have also received major Chinese sponsorship recently.

12. 04 CHINESE SUPER LEAGUE

13. In terms of value, it is the fastest growing football
league in the world, increasing 80% in 2016.
The most recent domestic rights were sold for $1.26
billion, a 20x increase on their previous deal.
04 CHINESE SUPER LEAGUE
This year’s January transfer window saw more records
broken.
The CSL became the highest spending football league
globally, beating even the Premier League when it
spent a collective $366 million on players.
Even more impressive is that in 4th place was Chinese
League One, spending more than both the Bundesliga
and Serie A.
DOMESTIC OUTDOING THE FOREIGN LEAGUES

14. The CSL has more followers on Chinese social media
than the top European football leagues combined.
However, it now has internationalisation on its agenda.
The latest season was broadcast in 53 countries
worldwide.
The most recent deal was made with Sky Sports to
broadcast 2 fixtures live in the UK each week.
04 CHINESE SUPER LEAGUE

15. 05 NATIONAL PRIDE

16. Contrary to popular stereotypes, China’s sports fans
are most interested in watching their own teams.
Each of the top 10 most viewed football matches last
year all featured either the Chinese national team or a
CSL club.
05 NATIONAL PRIDE
Likewise, at the Olympics it was not the history made in
the pool, the velodrome or on the track that attracted
the most attention.
Badminton totally dominated with the men’s singles
final attracting an audience of over 100 million.
The Women’s volleyball final came a close second.
A POWERFUL QUALITY

17. In another example of team China Power, Fu Yuanhui,
the young Chinese swimmer who became an online
sensation following her performances in the pool and in
interviews, gained 7.5 million Weibo followers in two
weeks.
05 NATIONAL PRIDE
To put this into perspective; Cristiano Ronaldo, one of
the most popular footballers in China, gained 700,000
followers in his first two months on the platform.
It’s not just mainstream sports. On the other side of the
world, CCTV broadcast the NHL draft for the first time
as 2.5 million people watched Song Andong become
the first ever Chinese athlete to get drafted.

18. President Xi’s plan has been implemented faster and
more successfully than expected so far, As yet, there
are no reasons to believe that his ambitious 2025 goals
will not be achieved.
WHAT DOES IT MEAN?
For China
1. Demand for sports content is high and the value of
rights is increasing.
2. The goal of increased spending is to grow domestic
sports market.
3. Within 10 years, Chinese sports teams and leagues
will compete on a global level.
4. By 2025 China will be the biggest and most
valuable sports market in the world.
For the rest of the world

19. Mailman is a leading China sports marketing agency.
We represent the world’s most influential sports
organisations, teams and athletes in China. Our
services include:
- Digital media
- Tour activation
- Sponsorship sales
- China Market strategy
- Media & brand valuation
- Media rights negotiation
- Chinese investor relations
ABOUT MAILMAN
For more information, please contact us.
For English:
Andrew Collins
Group CEO
andrew@mailmangroup.com
13402081987
For Chinese:
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Partnership Director
justin@mailmangroup.com
18621767921
www.mailmangroup.com

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