According to a report from global accounting firm PwC, China's entertainment and media (E&M) industries will continue to see robust growth over the next five years.
The report released Wednesday predicts that the combined revenue for E&M will reach 343 billion U.S. dollars by 2022.
The report said the Internet would continue to serve as a major driving force for the E&M industries as widespread mobile networks and evolving digital technology had created enormous development potential.
Analysts said China’s growth pace is substantially higher than the 4.4 percent global average.
"Chinese markets will continue to see enormous gains in Internet videos and other emerging areas," PwC partner Wilson Chow said.
CGTN Digital decided to take a look at the five key areas of growth that are expected to lead to China’s "robust growth" in the entertainment and media sectors.
Global streaming services
Streaming service markets continue to grow rapidly across the globe. The Asia-Pacific region leads growth at 24% due to faster broadband connections and increasing video service offerings mostly focused on local content. China video revenue growth of 16.3 percent will outpace global growth between now and 2022.
The report predicts that streaming service segments in China will experience significant growth through 2022 spurred by mobile penetration and affordable offerings.
China will experience a shift in viewing habits from free-to-air to premium services, adding 2.7 billion U.S. dollars in revenue through 2022.
“The main players are now focusing on original content to control costs, differentiate from competitors and monetize further by selling adaptation rights or licensing rights,” the report said.
Internet advertising
China’s Internet advertising market was the second-largest market globally in 2017, after the U.S., with total revenue of 46 billion U.S. dollars.
While overall Internet advertising growth continues globally, wired growth will taper particularly in mature markets.
“The market will shift to mobile as consumers increasingly prefer mobile platforms,” the report said. “China mobile growth will exceed global projections as mobile Internet penetration increases.”
It is predicted that mobile will dominate Internet advertising in China, representing 72 percent of the industry’s 80 billion U.S. dollar profits by 2022. Mobile Internet advertising growth drivers include video-on-demand, live streaming, and online shopping.
“Social media is very popular. Mobile Internet users in China are highly engaged,” the report said. “The convenience and increasing adoption of mobile payments are also fueling mobile Internet advertising.”
