The China Internet Network Information Center recently published its 38th China Internet development report, stating that by the end of June 2016, China's Internet video user scale reached 514 million, an increase of 10 million compared with six months ago.

This means 72.4% of Chinese netizens were using Internet video services.

In December 2015, the user scale of Internet video exceeded Internet music for the first time, making Internet video the top entertainment application in China. In this latest report, the Internet video user group realized continuous stable growth and further widened the distance with Internet music.

By device, the trend of multi-screen was obvious. On one hand, Internet video users continued to migrate to mobile devices. By the end of 2016, Internet video users on mobile devices reached 440 million, which means about 85.7% of Internet video users were using mobile devices; and the growth rate during the half-year period was 8.7%. On the other hand, with the popularity of smart TV, about 21.1% Chinese netizens were surfing on TV, which opened a new space for Internet video users. In the future, VR devices are expected to become another hardware entry point for video companies.

By content, the copyright purchase competition of major video websites eased and the development of self-generated contents became better and more diversified.

In regards to business models, high-quality content promoted the growth of paid users and there will be large potential of value-added consumption of video users in the future.


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