Tencent and Iqiyi lead China's streaming revolution | News

China's aggressive 5G buildout – now over 4 million base stations – is leading to an explosion in streaming, with 5G connections expected to exceed 50 percent by the end of 2024.

And 5G isn't just about faster downloads; It has the potential to reshape the entire entertainment landscape. Unlike other Asian markets that rely on international streaming services, China is a distinctly homegrown affair. A new report from BB Media confirms this, showing that the top five streaming platforms in China are all domestic providers. Platforms like Tencent Video and Iqiyi are benefiting from this growth, displacing global competitors that are struggling to gain a foothold in the market.

Three platforms lead with a market share of 22% and 19% respectively:

• Tencent video: With a penetration rate of 110.10 million households, the company is at the top despite a reported decline in streaming revenue in the second quarter of 2024, indicating the volatility of the market even for the market leader.
• iQIYI (Baidu): The country is close behind, with 102.73 million households and an annual revenue of about 32 billion yuan ($4.5 billion) in 2023.
• Youku (Alibaba): Despite a $1.2 billion goodwill write-off in February 2024, the company remains in third place with 91.63 million households.
• Mango TV: Mango secured fourth place with 69.83 million households and generated around 10.6 billion yuan ($1.5 billion) in online video revenue in 2023, showing consistent performance.
• Yangshipin: A fast-growing force in new media: 52.70 million households already use this streaming platform. Their broadcast of the Paris Olympics attracted large numbers of viewers.

Consumers avoid sharing accounts

An interesting trend emerging from the report concerns account sharing.

Bucking the global trend of rampant account sharing, Chinese consumers show a higher willingness to pay for individual subscriptions. Account approval remains remarkably low, ranging between 14% and 17% on most platforms. Even Mango TV, with the highest sharing rate in the top 5, only hits 19%, below the global average, where password sharing is widespread among almost half of streaming subscribers.

This disciplined approach to subscriptions increases the profitability and potential of China's streaming market, creating a unique ecosystem dominated by domestic players based on the widespread adoption of 5G technology.

Mobile outperforms TVs and tablets

Mobile is leading the Chinese streaming kingdom. Reflecting trends across the APAC region, Chinese consumers prefer smartphones for consuming online content. An aspect that new streaming platforms with ambitions in China need to understand and adapt content accordingly. This mobile-first landscape is dominated by telecommunications giant China Mobile, followed by China Telecom and China Unicom.

The report highlights the huge growth potential of the Chinese streaming market, which is completely dominated by domestic players. This represents a double-edged sword for new entrants. On the one hand, strict government regulations and strict censorship guidelines create significant barriers to entry. International platforms like Netflix face challenges as content deemed “immoral” by the government can disappear overnight.