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SAPPRFT ‘Blue Book’ Highlights Impact of Internet Video in China

China’s State Administration of Press, Publication, Radio, Film and Television (SAPPRFT), officially released the Audio-Visual (AV) New Media Blue Book 2015.

Internet AV services will continue to expand. At the end of 2014, there were 604 organisations registered as Internet AV providers. Among these operators, 37% of them were broadcast groups. As a major part of the Internet AV services, the online video industry has been developing rapidly in recent years: from 2011 to 2014, its annual growth rate of market size has been above 42%.

In 2014, the market size has reached 23.97 billion yuan .“These data indicate the industry structure is relatively stable and the market is continuing to expand,” said Yuan Tong Nan, Director of Development Research Centre of SAPPRFT.

Meanwhile, the Internet AV providers have also put emphasis on building a comprehensive platform to achieve cloud-based multi-screen distribution. China Central Television (CCTV), China National Radio (CNR) and China Radio International (CRI) have all established a platform with multi-terminal distribution of rich audiovisual content.

As for development trends, Yuan Tong Nan thinks competition will become more intense. As Internet giants such as Baidu, Ali, Tencent, millet and 360 have entered the Internet AV service industry, the fierce competition will only make strong players stronger.

Yuan also thinks new media platforms will continue to expand into other areas and sees one of the most important developments as being IP-based content creation, development and operation, with the gradual establishment of an IP-centred ecosystem. Meanwhile, in the area of content, Yuan says Internet AV operators will focus on branding strategies and produce their own content to differentiate them from competitors. This also reduces costs on copyright.