In 2019, online video industry in China keeps high growth. and the revenue of online video industry reached 47.55 billion Yuan in the first half of 2019, rising 17.9% compared with the corresponding period of the previous year.
Advertising revenue is still one of main revenue sources of online video platforms. Brand ads revenue has a larger share in the online advertising revenue of online video platforms as content media and advertiser resources mostly concentrate on the top players.
In the second quarter of 2019, top brand advertisers reduced budget, implying great influence on online video industry. and online video advertising revenue experienced negative year-on-year growth for the first time. At the same time, increasing of viewers’ paying willingness relieved the pressure shrinking advertising budget brought to the whole online video industry.
Since the beginning of 2019, viewers’ payment for online video has taken up over 40% in the revenue of online video platforms. In the second quarter of 2019, viewers’ payment for online video with the share of 41.9% replaced advertising and became the principal revenue source of online video industry. In the future, the share will take the commanding lead as copyright awareness increases, proportion of contents generated by online video platforms expands and the viewers have the habit of paying.
Meanwhile, because brand advertising market cools down in 2019, online video advertising revenue falls in a short term. But in the long run, advertising will be still an important revenue sources for online video platforms with further application and development of out-stream video ads.
For online video serves as an important display form of IP, top video platforms keep extending the boundary of their business, and IP derivatives and hardware production produce more monetization potential for online video platforms.