Online video users in China reach 240 million at end-2009

The China Internet Network Information Center (CNNIC) has published its 25th Survey Report on the Internet Development in China.

The number and structure of Chinese Internet users, basic Internet resources, conditions for Internet access, Internet applications and other information are of great significance for the government and enterprises to keep up to-date of Internet development and decision making. In 1997, the governmental authorities made a decision that China Internet Network Information Center (CNNIC) performed the statistical work with the other four Internet units. The 1st Statistical Report on Internet Development in China was published in November of 1997. To regularize and systemize the statistical work, from 1998, CNNIC has periodically published the report in January and July every year. After the statistics report was published, there have been various aspects of attention and it has been widely used domestically and abroad. This is the 25th survey.

Online Video

By the end of 2009, the number of online video users reached 240 million, an increase of 38.44 million compared to the end of 2008. The utilization rate was 62.6%, down 5.1%.

Online video is increasingly being recognized as a form of media expression, its market value, advertisement value and the size of the targetted audience continued to increase. Considering many complicating elements such as brand name value improvement and evading the risk of content infringement, in 2009, online video providers had made a large scale adjustment in the content system, focused the content mainly on movies, dramas and professional produced content.

From the industrial perspective, online video media and traditional film/television media are gradually shifting from competition to cooperation. Internet, as a new channel of secondary transmission, holds an important position in the new media structure . At the same time, traditional news media, TV stations and video media are developing channels of online video, which has directly propelled and led to the standardization and development of online video industry. CNTV’s participation will promote the online video industry to be further standardized and to develop orderly. With the gradual establishment of market discipline and enhancement of supervision, the online video market environment will be further
optimized.

Comparison of Internet Entertainment Application User 2008-2009

                                      2008                    2009  Changes in 1 year
                    ----------------------  ----------------------  -----------------
                    Utilization      Users  Utilization      Users  Increment  Growth
                           Rate  (million)         Rate  (million)  (million)    Rate
                    -----------  ---------  -----------  ---------  ---------  ------
Online Game               62.8%    187.00         68.9%     264.54      77.54   41.5%
Online Video              67.7%    202.00         62.6%     240.44      38.44   19.0%
Online Music              83.7%    249.00         83.5%     320.74      71.74   28.8%
Online Literature            --        --         42.3%     162.61         --      --

More: Statistical Reports on the Internet Development in China