Tencent Video leads OTT content market in China

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

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