By the end of 2012, around 66 percent of China’s 564 million internet users watched online videos, equating to around 372 million people. In the same year, the value of the online video market was at 9.3 billion yuan and is estimated to grow 3.5 times by 2016, reaching 33 billion yuan. The main source of revenue from this sector comes from advertising. The online video advertising market was worth 4.2 billion yuan in 2011, this is expected to grow to 9.1 billion in 2012, a growth increase of 115 percent.
The leading online video platforms Youku and Tudou merged on August 23, 2012 and currently operate under the name Youku Tudou Inc., however both maintain their sites in their previous, separate forms. In terms of revenue, Youku and Tudou had a market share of 20.9 percent and 11.5 percent respectively in the first quarter 2012. In October 2012, Youku Tudou Inc recorded 317 million users, followed by Tencent with 272 million users.
In 2011, 85 percent of all consumers of online video media, were aged between 10 and 39. 65.3 percent of male and 61.2 percent of female internet users watched online videos. 91.4 percent of users accessed online video websites via PCs or laptops, while smartphones came in as second favorite with 33.6 percent. 7.6 percent of viewers paid for online videos meaning that they had access to more videos, including videos that were not available for free. Reasons given for this form of access included better video quality and the removal of advertising from the content. 25.1 percent of viewers were cited stating they would consider paying for online video usage in the future.