Streaming video is providing growth for the entertainment sector in China, as theatrical film slows to low double-digit figures. The Chinese film and TV industries grew by 26% last year, hitting $108 billion, according to a new report.
The report was prepared by Oxford Economics and published by the Motion Picture Association. An initial draft of the report was launched on Tuesday at the 2018 U.S.-China Entertainment Summit, hosted by the Asia Society, Southern California, at the Skirball Cultural Center, Los Angeles. The full report will be published later this year.
The streaming business– comprising subscription video on demand, advertising-supported VoD, online rentals and download to own — is one of the fastest growing segments. The report shows it as nearly trebling (191%) to a value of $6.7 billion (RMB46.3 billion).
Theatrical box office is up by 11% so far in 2018. The sector supported a total of 4.6 million jobs and generated a total tax contribution of $21.3 billion (RMB147 billion).
“The economic growth of the movie and television sector in China is tremendous, but not surprising given the enormity of the Chinese market,” said Mike Ellis, the MPA’s MD in Asia-Pacific. “With more than 751 million Chinese citizens connected to the internet as well as widely available quality local content and vast potential for increased international content, this is a region and industry to watch with close interest.”
Gong Yu, CEO of iQIYI said: “The online video industry in China is continuing to flourish by innovating for the future, using Artificial Intelligence to help curate and predict an individual’s viewing habits, and delivering a highly satisfying entertainment experience. The sector attracts highly creative professionals who help to evolve the business, often leading the world in new offers and services. I expect the economic contribution generated by OTT to continue its growth curve.”