Subscription video-on-demand in China - statistics & facts

Millions of people across the world are using video-on-demand (VOD) services every day. A typical VOD service gives users the freedom to choose when, where, and how they access video content. In 2022, China was estimated to have about 429 million video streaming users, second only to the United States. The demand for high quality videos has driven the Chinese VOD industry to shift from advertising (AVOD) to subscription-based (SVOD). With consumption habits and technology continuing to evolve, China’s SVOD market was projected to be valued at nine billion U.S. dollars by 2025. However this estimate is a conservative one, the impact of the coronavirus could see the market being valued at upwards of 20 billion U.S. dollars in just a few years’ time.

A hybrid monetization model

Many Chinese over-the-top (OTT) platforms, which distribute video material directly to viewers over the internet, adopt the subscription VOD business model. Similar to traditional TV packages, SVOD users pay a recurring monthly or annual fee for full access to a video library. A few large local OTT operators include 15 seconds of pre-roll ads into the subscription content. On top of SVOD services, the transactional VOD (pay-per-view) model is commonly applied for mega-hit titles. Due to stagnant subscription growth and a lower viewer tolerance for ads, some platforms have also launched e-commerce and gaming features to boost revenues.

Standing out in a saturated market

Youku Tudou, iQIYI, and Tencent Video (WeTV) have long been the prominent OTT domestic players with extensive video content collections. The video sharing pioneer Youku Tudou is known for its inhouse online TV dramas and offers a cheaper annual subscription package. iQIYI, often dubbed as China’s Netflix, has earned a reputation for having a broad library of variety shows and movies. Along with a competitive monthly pricing scheme, iQIYI's paying members have surpassed 100 million. The late market entrant, Tencent Video, has acquired exclusive streaming rights of popular programs, such as American dramas, NBA, and ELF. This has enabled it to stand out from the competition and achieve rapid user growth and a high retention rate. Bilibili (with a focus on youth subculture streaming) and Mango TV (specializing in reality shows) are the latest industry disruptors.

A growing appetite or fatigue?

Video streaming has been one of the winners in the coronavirus pandemic. Instead of visiting cinemas, almost 60 percent of Chinese respondents would not mind paying for movie streaming. Content variety, ad-free, and mobile-first are cited as the main reasons to pay for SVOD services. For most Chinese consumers, one is not enough. Many are happy to pay for multiple subscriptions to access exclusive content. However, it is still unclear whether the pandemic gain will be permanent, as a third of SVOD users expressed an intention to unsubscribe when the coronavirus restrictions are lifted. Original offerings and competitive pricing are still the major challenges in user retention.

The next moves for SVOD

On the other side, a few notable technology trends, like increasing AI adoption, reducing connectivity cost, and the rising role of cloud services, are expected to cut streaming costs and boost flexibility. As the main OTT revenue growth driver, China’s SVOD sector was projected to achieve a compound annual growth rate (CAGR) of 12.4 percent between 2020 and 2024.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Lai Lin Thomala, Dec 20, 2023

Key insights

Number of SVOD users
370m
SVOD revenue with COVID-19 impact 2027
32.11bn USD
SVOD penetration rate
48%
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