OTT Platform  Markets in China

OTT Platform  Markets in China

Over The Top (OTT) refers to a system in which a company provides various application services such as videos and games through smart devices. As the number of Internet subscribers and smart device users in China has steadily increased, China’s OTT industry market has begun to receive a lot of attention.

China’s OTT Market Size

China’s OTT market sales grew to about $1.351 billion in 2016, and grew to $9.538 billion in 2020, showing an annual average growth rate of about 63%. It is expected to be $87 billion by 2024. The growth rate of China’s OTT market was thought to be a temporary phenomenon due to COVID-19, but it is a market that is expected in the future in that it has shown steady growth before COVID-19.

Picture 1: OTT market size in China from 2016 to 2020

 

China’s Top 3 OTT Platforms

The number of OTT service subscribers in China is growing exponentially, especially Tencent Video, iQIYI, and Youku Tudou. In the case of Tencent Video, which is ranked third among the world’s OTT company, paid members are divided into a total of eight grades to provide complex services linked to various platforms such as finance, SNS, e-commerce, original content and game streaming content, and content monopoly. In addition, there were about 20.5 million subscribers in 2016, but in 2020, the number of subscribers reached 121.77 million, showing a high annual growth rate of 56.1%. Tencent Video has the largest number of subscribers among OTT services of China with a 32.3% share in the Chinese OTT market.

Conclusion

Other countries use overseas OTT services and each country’s OTT services, but China is expected to grow further because it uses OTT services in China. Advertising using OTT services is also expected to develop.

Hebronstar Strategy Consultants

Li Hao