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China - Digital Economy and Digital Media


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China - Digital Economy and Digital Media

Key developments:

With the world's largest online population, China's digital economy has grown rapidly to cater to the needs of the online masses. Much of the initial growth in China's digital economy was underpinned by the online demand for information, media and commerce, giving rise to China's three domestic digital economy giants; Baidu (search), Alibaba (e-commerce) and Tencent (social media). Traditional media players largely struggled to keep pace with the migration of audiences to online media, while China's telcos missed the opportunity to develop into digital giants as they focus on deploying fixed and mobile broadband networks.

Also evolving within China's digital economy to meet the needs of China's online audience are the banking and financial services industry, public administration services, health services and education services.

China's digital economy will continue to grow as only half of China's 1.4 billion people are online. This online audience is growing wealthier due to China's consistent macroeconomic growth and demographic trends such as ongoing urbanisation. As a consequence China's online audience is increasingly willing to spend online, a trend encouraged by the government as it seeks to balance the economy away from an overreliance on building infrastructure and exporting goods towards domestic consumption.

The fate of China's traditional media players is largely secure given that they are government owned and hence seen as an integral part of the government's desire to control the media. The competition for audience share and hence revenue between privately and state-owned operators reflects the same competitive challenges faced by state-owned operators in other industries in China's evolving economy.

Key developments:

China's big digital giants are consolidating their position by branching into non-core areas through investments in China's many start-ups, some of which were launched by ex-employees, mirroring the trend that developed Silicon Valley's start-up ecosystem.

China's broadcasters are under threat as audiences shift from traditional broadcasters to online media platforms operated by new players; the largest online platform boasts almost one billion daily mobile views.

The TV is expected to become one of the biggest battlegrounds for China's digital giants as its role evolves into a dedicated hardware interface into one of China's many developing walled garden digital ecosystems.

China has largely completed digitalisation of its traditional broadcasting platforms.

China's largely state-owned CATV industry is undergoing consolidation to capture the economies of scale that was not possible through operating thousands of smaller CATV operators.

China's massive online population allows a number of social media platforms to flourish, a number of which have pivoted towards e-commerce in order to monetize traffic.

China's digital economy is yet to reach its full potential as just over half of the population is online.

Companies mentioned in this report:

Alibaba, JD.com, China Telecom, China Unicom, Baidu, Tencent, SINA, Weibo, Sohu, Xiaomi, Meilishuo, Mogujie, RenRen, China Central Television (CCTV), Youku, Iqiyi/Qiyi, V.QQ.com, BesTV


1. Synopsis
2. Digital economy
2.1 Introduction
3. Online activities
3.1 e-Commerce
3.1.1 Alibaba
3.1.2 JD.com
3.1.3 China Unicom
3.1.4 Government e-commerce projects
3.2 e-Banking
3.3 e-payments
3.3.1 Liberalisation of bank card clearing market
3.4 e-Government
3.5 e-Health
3.6 e-Education
4. Digital media
4.1 Introduction
4.2 Regulation
4.3 Key digital media players
4.3.1 Baidu
4.3.2 Tencent
4.3.3 SINA
4.3.4 Weibo
4.3.5 Sohu
4.4 Advertising
4.5 Television broadcasting
4.6 Internet Protocol TV (IPTV)
4.6.1 Alibaba
4.6.2 Baidu
4.6.3 Tencent
4.6.4 Xiaomi
4.6.5 China Telecom
4.6.6 China Unicom
4.7 Hybrid fibre coax cable (HFC)
4.7.1 Overview
4.7.2 Consolidation
4.7.3 CATV market regulations
4.7.4 Major operators
4.7.5 Statistics
4.7.6 Digital Cable TV
4.7.7 Next Generation Broadcasting network
4.8 Satellite TV
4.9 Video streaming
4.9.1 Major players
4.10 Social media
4.10.1 Meilishuo
4.10.2 Mogujie
4.10.3 RenRen
4.11 Music
4.12 On line gaming and gambling
4.12.1 Major players
5. Related reports
List of Tables and Charts
Table 1 Utilisation rate and number of users of different network applications 2012 2014
Table 2 Utilisation rate and number of users of different network applications 2009 - 2011
Table 3 Market share of online search engines 2005 2010; 2012; 2014
Table 4 Online shopping users and utilisation rate 2009 2014
Table 5 Brand penetration of online shopping platforms 2014
Table 6 Proportion of businesses engaged in e-commerce by industry 2014
Table 7 Proportion of businesses engaged in e-procurement by industry 2014
Table 8 Alibaba financial data 2011 2015
Table 9 Alibaba revenue breakdown 2011 - 2015
Table 10 Alibaba GMV: Taobao, Tmall, Total, Mobile 2013 - 2015
Table 11 Alibaba Annual active buyers and Mobile MAU 2014 - 2015
Table 12 JD.com financial data 2012 - 2015
Table 13 JD.com Gross Merchandise Volume (GMV) 2011 - 2015
Table 14 JD.com Active customer accounts 2012 - 2015
Table 15 JD.com Fulfilled orders 2012 - 2015
Table 16 Online banking users and utilisation rate 2009 2014
Table 17 Brand penetration of online payment platforms 2014
Table 18 Baidu financial data 2012 - 2015
Table 19 Tencent financial data 2012 - 2015
Table 20 Tencent capital expenditure 2013 - 2015
Table 21 Tencent Monthly Active Users of various products 2013 - 2015
Table 22 Tencent Mobile Monthly Active Users for QQ and Qzone 2014 - 2015
Table 23 SINA financial data 2012 - 2015
Table 24 SINA revenue breakdown 2012 - 2015
Table 25 Weibo financial data 2012 - 2015
Table 26 Weibo operational data 2012 - 2015
Table 27 Sohu financial data 2010 - 2015
Table 28 China online advertising revenue 2012 - 2018
Table 29 China Central TV advertising revenue 2002 - 2014
Table 30 China Telecom ITV revenue 2012 - 2015
Table 31 Cable TV subscriptions and annual growth 1996 - 2016
Table 32 Digital cable TV subscribers and penetration rate 2002 - 2016
Table 33 Online video users and utilisation rate 2009 2014
Table 34 Online video viewing by device - 2014
Table 35 Online video viewing by Desktop/laptop and Mobile 2012 - 2014
Table 36 Online video viewing by venue and device 2014
Table 37 Channels to access and watch online videos 2014
Table 38 TV terminal device utilisation by online video viewers 2014
Table 39 Usage frequency of Internet TV features 2014
Table 40 Brand Penetration rates of video sites - 2014
Table 41 RenRen financial data 2010 - 2015
Table 42 RenRen operational data 2012 - 2014
Table 43 Online music users and utilisation rate 2009 - 2014
Table 44 Online gaming users and utilisation rate 2009 2014
Table 45 Time spent playing online games daily 2014
Table 46 Payment for PC online games 2014
Chart 1 Cable TV subscribers and digital TV penetration 2007 - 2016
Chart 2 Online video viewing by duration and device 2014
Chart 3 Users penetration of major video portals 2014

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