In Q1 2017, the revenue of China’s online video industry reached 17 billion Yuan, decreasing 8.1% compared with the forth quarter of 2016 but surging 47.4% compared the same period of the previous year. The decline can be attributed to the participants’ advertising revenue decrease brought by the gloomy advertising market in Q1.
In Q1 2017, the share of user payment in online video revenue for the first time exceeded 20% and attained 22.1%, skyrocketing 82.9% versus Q1 2016. The revenue of user payment has maintained a relatively high growth rate since 2016. The online video companies will make great efforts to raise their revenue from membership, thus it is expected that the companies will experience fast growth in the future. Online video advertising experienced the cyclical low season in Q1, while copyright distribution and other revenue had little fluctuation and had a relatively stable development.
In Q1 2017， China’s online video advertising revenue totaled 8.37 billion Yuan with a YoY growth of 51.4% and a QoQ growth of 19.4%. Due to the influence of membership-related businesses, online video platforms are now actively searching for advertising forms other than in-stream video ads, such as interstitial and out-stream video ads. Top companies started the exploration of news feed ads in the second half of 2016 and developed fast in this field right now. In the future, the revenue of different video advertising forms will get increasingly reasonable in online video industry, and in-stream video advertising revenue will no longer take a dominant role in the market.