PCs have become the entertainment hub of the digital home in China
Internet users in China are tuning in to online video in record numbers. PCs are the hub of entertainment in homes in China, a trend even more pronounced as the government continues to limit the broadcast of popular television shows in favor of official programs, and as the country transitions to new leadership.
According to the China Internet Network Information Center (CNNIC), a government body sanctioned to monitor the development of the internet in China, there were 350 million online video watchers in China as of June 2012. That’s 40 million more people than the total population of the US last year.
Video consumption in China occurs over a variety of channels. The Data Center of China Internet (DCCI), a local research firm in China, found that the PC was by far the most popular device among online video viewers in the country. More than 40% of online video viewers spent 20 or more hours per week watching video on their PC, compared to 20.9% of these types of viewers who watched 20 or more hours of video on their TV.
To continue catering to the growing group of online video viewers, online video sites like Youku/Tudou (which announced a merger back in March), Sohu and Qiyi are battling to produce new content and license existing video content, including TV shows and movies from the West.
Increasing long-form video content and high user figures will have strong implications for video advertising as well. DCCI expects online video ad spending in China to nearly double from $523.2 million in 2011 to $964.4 million in 2012.
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