The revenue of China’s Online Video Companies Totaled 39.7 Bn Yuan in 2015

Source:iResearch April 19,20166:29 AM
In 2015, the revenue of China’s online video companies totaled around 40.0 billion Yuan with a YoY growth of 59.6%. Advertising and non-advertising services developed hand in hand and both contributed much to the revenue growth of online video sector. Advertising revenue took the largest share of 52.6% in the revenue of China’s online video companies while the revenue from non-advertising services had a growth rate much higher than that of advertising revenue.

China’s online video advertising market has relatively stable growth in recent years, indicating that the market has been mature. In 2015, China’s online video advertising revenue attained 23.39 billion Yuan, up 54.1% compared with the previous year. and it is expected to exceed 50 billion Yuan in 2018 and have stable growth as well in the next few years.

iResearch found that there were three main factors contributing to the future development of online video advertising in China. The first is the increase of high-quality video content. The second is the production-oriented marketing, which will improve the effect of the advertising and further fuel the advertising revenue growth. Moreover, the booming development of mobile video business also foster the growth of online video advertising revenue.
Online video and online search services are the most frequently used internet services via PC in China. The monthly unique users of online video was 510,090, 000 in Dec 2015, ranking the second after online search, whose monthly unique users was 521,960,000. Meanwhile, mobile video business kept an accelerating growth and reached 580,000.000 in Dec 2015.

iResearch holds the opinion that the growth of unique users of online video services via PC decelerates for online video market has stepped into mature period and tends to be saturated on PC. 

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