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China's Milestone For Mobile Video

For a vivid illustration of how smaller screens are reshaping the internet, look no further than the online video landscape in China, where the number of people watching on tablets and phones exceeded the number of people watching on PCs and laptops for the first time last year.

The respective audiences for each platform were about the same size: about 308 million viewers on desktop and about 311 million viewers on mobile, overlapping for a 433 million viewing base overall, according to the latest report from statistical body, CNNIC, published earlier this week.

The desktop audience, however, is smaller than it was – down from over 350 million viewers in 2012.

By contrast, the mobile audience, just 184 million strong in 2012, is growing by leaps and bounds.

Mobile broadband plans are still fairly pricey for many Chinese consumers, but WiFi is becoming increasingly popular, boosted by the rise of apps that automate WiFi access, making mobile video more accessible.

“We’ve seen that Chinese users are more sensitive to the monthly costs of 3G and 4G accounts, which is why the WiFi aggregators have provided a nice boost,” comments Michael Clendenin, founder and MD of Shanghai-based research company, RedTech Advisors.

“You see folks like Qihoo and Alibaba getting into the business of providing their own aggregation tools,” Clendenin adds.

Photo gallery

Viewers Steady, viewing up

Meanwhile, the size of China’s overall online video audience scarcely changed last year, edging up by just over 1%, following years of double-digit growth.

A slowdown is inevitable, as internet access in China, which rose by 5% last year, reaches more people on slower networks in lower-tier cities.

Time spent watching video by existing viewers continues to rise, however. People still tend to watch longer shows on bigger screens.

“Most of the online video media are setting annual sales targets at growth rates of 30-50%,” notes Joanna Wang, GM of trading for Dentsu Aegis Network China, a media agency.

“The growth rate has slowed down from 50-80% in previous years,” Wang adds. “The market growth will also slow down, but will still grow.”

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Lavina Bhojwani
VP, Client Services & Operations
Media Partners Asia
+852 2815 8710
Media Partners Asia

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