• Central & East Europe
  • Features

Broadband TV News

Independent. Since 2003

  • Home
  • Newsline
    • Platforms
      • Cable
      • Connected TV
      • IPTV
      • Satellite
      • Terrestrial
    • Technology
    • HDTV
    • Channels
    • On Demand/VOD
    • Distribution
    • Central & East Europe
    • Event Coverage
      • Calendar of Events
    • Regulation/Legal
    • Marketing
    • Columns
      • Briel On
      • Chris Dziadul Reports
      • Clover’s Week
    • People
    • Finance
  • Resources
    • White Papers
    • Download Presentations
  • Events
    • Events Diary
    • BTN Events
    • Events Coverage
    • Submit the details of your event
  • About
    • Contacts
    • Our Privacy Policy – Terms and Conditions
    • Editorial Calendar
    • RSS & Social Networking
    • Mobile
    • Logos and Pictures
  • Advertise
    • Media Info
    • Hosted Events
    • Roundtable Video
    • Roundup Video
    • Mechanical Data
    • Terms & Conditions
  • Subscribe

China’s TV programming market is second only to the US

August 20, 2018 14.26 Europe/London By Broadband TV News Correspondent

TV broadcasters in China spent 43 billion yuan ($6.4 billion) on programming in 2017, compared to 30 billion yuan ($4.5 billion) spent by online platform companies.

China has overtaken the United Kingdom in the television programming industry, becoming the second-largest market in the world after the United States, according to IHS Markit. TV programming expenditures in China, including online platforms, hit 73 billion yuan ($10.9 billion) in 2017, followed by the UK at ($10.0 billion), while the US led the global market, spending ($58.3 billion).

“The growth in China’s TV programming spending is largely due to aggressive content investment by online companies Baidu, Alibaba and Tencent,” said Kia Ling Teoh, senior research analyst, IHS Markit.

“These three giants have upped their spending on content origination and acquisition for their respective video platforms iQiyi, Youku Tudou and Tencent Video.”

Broadcaster advertising revenue growth in China has plateaued since 2014, reaching 83 billion yuan ($12.3 billion) in 2017, but online revenue is on the rise, driven by greater video advertising and subscription income. TV broadcasters spent 43 billion yuan ($6.4 billion) on programming in 2017, compared to 30 billion yuan ($4.5 billion) spent by online platform companies.

“As digital entertainment viewership gains traction, advertisers are gradually moving more of their budgets to digital platforms,” Teoh said.

“We expect online companies to overtake TV broadcaster spending in 2018, if the content creation spree persists.”

Original programming made up 49 percent of all Chinese programming in 2017, followed by acquired programming at 46 percent, and sports programming at 5 percent. IHS Markit expects this split to remain relatively consistent over the next five years.

“Broadcasters and online platform companies are increasingly creating their own content, not only to lure paying subscribers, but also for merchandising, mobile game development and other new revenue streams,” Teoh said.

“In addition, distribution of linear TV and online platform content can generate lucrative returns, in both domestic and foreign markets.”

Despite the increased focus on original programming in China, acquired content will remain an integral part of broadcasters’ content strategy, as many companies still rely heavily on acquired content. The large and growing consumer appetite for global sporting events, particularly online, is also expected to boost spending on sports programming.

“While online platform companies are increasing China’s TV programming expenditure, they should be concerned by user retention and sustainability of content costs,” Teoh said.

“In order to retain existing subscribers and attract new ones, online platform companies are investing heavily to create and acquire exclusive content. Unlike Netflix, these companies still rely substantially on advertising and sponsorship. If the cost of content continues to surge, such aggressive investment will become unsustainable.”

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)

Related

Filed Under: Newsline Tagged With: China, IHS Markit Edited: August 20, 2018 14:26

Latest News

  • TVN starts DVB-T2 tests
  • UPC Direct rebrands as Direct One
  • Akamai intelligence services integrated into Plume smart home bundle
  • Piracy: Most Germans unaware of hidden dangers
  • Discovery and TIM launch discovery+ in Italy

White Paper

White Paper: An approach to implementing HbbTV on Android TV by Zattoo

By Broadband TV News Correspondent

HbbTV’s self stated goal is to “harmonize the broadcast, IPTV, and broadband delivery of entertainment to the end consumer through connected TVs and set-top boxes”.

Most Read

  • Court documents reveal cost of joining Apple TV platform
    Court documents reveal cost of joining Apple TV platform
  • WarnerMedia announces International HBO Max launch team
    WarnerMedia announces International HBO Max launch team
  • United Group/Telekom Srbija dispute involves Telenor
    United Group/Telekom Srbija dispute involves Telenor
  • Netflix ‘instant’ play goes global
    Netflix ‘instant’ play goes global
  • Discovery+ goes live in the UK
    Discovery+ goes live in the UK

Watch Video

About Us

Broadband TV News is the Industry’s No.1 Information Provider bringing news, analysis and comment on the delivery of digital television, around Europe and the World.

Broadband TV News

PO Box 499
Cambridge
United Kingdom
CB1 0AH
news@broadbandtvnews.com

Editions

  • Central & East Europe
  • Channels
  • Columns
  • Features
  • White Papers

Subscribe

Join over 40,000 readers to our Daily and Weekly emails. Complete the simple form to get the latest issue delivered direct to your inbox.

Click Here

Advertise with Broadband TV News

Broadband TV News offers a range of commercial possibilities from banner advertising to white paper hosting. Keep your brand at the front of buyer's minds.

Contact: Chris Griffin Commercial Director Tel: +44 7590 522475

Connect with Us

 

Copyright © 2021 Broadband TV News LLP · Log in

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.OK