Tencent Video to maintain its edge over rivals iQiyi and Youku over the coming years, according to eMarketer.
Tencent Video is the leader in China’s subscription over-the-top (OTT) video market, according to eMarketer’s latest market-share estimates, with Baidu-owned iQiyi and Alibaba-owned Youku the next two key players in a tight race.
eMarketer expects 24% out of 229 million people who watch video via a subscription streaming service that bypasses traditional distribution in China will subscribe to Tencent Video by the end of 2018, and that figure will surpass 29% by 2020. iQiyi and Youku are expected to attract 22.9% and 22% of subscribers respectively.
Youku secured rights to stream this year’s FIFA World Cup, resulting in anticipated growth in its subscriber base by 55% this year, stated eMarketer. This means Youku may overtake iQiyi for second place by the end of 2019.
“Competition in China’s OTT market, fuelled by growing internet connectivity and a broader shift toward internet entertainment, is cutthroat. As subscriber churn rates are high, content remains a critical part to improve user stickiness,” said eMarketer forecasting director Shelleen Shum.
Source: campaignasia.com; 24 July 2018