Online Media Consumption Habits - China - August 2016

OVERVIEW
What you need to know
Definition
Demographic classification
Personal income
Household income
EXECUTIVE SUMMARY
The consumer
Online media is increasingly important in consumers’ lives
Smartphone is still the major device, and more content to be adapted to smart TVs
Figure 1: Consumption of online media, by digital devices, May 2016 and April 2015
News, music, e-books and radios are preferred on weekdays
Figure 2: Usage of online media on different occasions, May 2016
Consumers are willing to pay for online videos or music
iQIYI, QQ Music and Kugou Music are top media streaming websites
Figure 3: Paid users of video or music streaming websites, May 2016
Content and experience are both important to attract paid users
Figure 4: Attractive paid membership benefits, May 2016
When watching online videos, consumers prefer to remain part of the audience
Figure 5: Activities undertaken when watching online videos, May 2016
Going comprehensive is not necessary for video streaming websites
Consumers who are more likely to watch advertising videos tend to be more active on social media
Figure 6: Attitudes towards online videos, May 2016
Opportunities for online news
Figure 7: Attitudes towards online news, May 2016
Mintropolitans are more willing to pay for membership
Figure 8: Paid users of video or music streaming websites, by consumer classification, May 2016
What we think
ISSUES AND INSIGHTS
Marketing via online media in fragmented time slots
The facts
The implications
Marketing via bullet screen comments and live streaming
The facts
The implications
Making video advertisements more efficient
The facts
The implications
Opportunities for online news
The facts
The implications
Attracting paid users by enhancing experience
The facts
The implications
THE CONSUMER – WHAT YOU NEED TO KNOW
Penetration of online media sees an increase
Smartphone is still the major device, and more content to be adapted to smart TVs
News, music, e-books and radios are preferred on weekdays
Consumers are willing to pay for online video and music
Both content and experience are important to attract paid users
When watching online videos, consumers prefer being in the audience rather than participants
Social media users skew to males, and bullet screen comments appeal to those in early 20s
For video streaming websites, going comprehensive is not necessary
Who are more likely to watch advertising videos?
Opportunities for online news
Mintropolitans are more willing to pay for membership
ONLINE MEDIA CONSUMPTION ON DIFFERENT DEVICES
Penetration of online media sees an increase
Figure 9: Penetration of online media on computers, smartphones and tablets, May 2016 and April 2015
20s and 30s are still core users
Figure 10: Penetration of online media, by age and city tier, May 2016
Online radios and e-books attract more consumers with higher education
Figure 11: Penetration of online media, by personal income and education level, May 2016
Smartphone is the major device for online media consumption
Videos and games to focus on enhancing using experience
Tablets to develop e-book reading and other educational features
Adapting more content to Smart TVs
Figure 12: Consumption of online media, by digital devices, May 2016
USAGE OCCASIONS OF ONLINE MEDIA
News, music, e-books and radio are preferred during weekdays.
Figure 13: Usage of online media on weekdays and weekends/holidays, May 2016
Music is the most popular choice during commute on weekdays, especially among 20-24-year-olds
Online news is popular during work/study and lunch breaks
Keeping up with the news is important throughout weekdays, especially for males
Videos and games are popular choice during weekends, day or night
Figure 14: Usage of online media on different occasions, May 2016
PAID USERS OF MEDIA STREAMING WEBSITES
Most online media consumers have paid for online video or music
Figure 15: Number of paid memberships for video or music streaming websites, May 2016
Consumers are more willing to pay for online videos than online music
Paid music users tend to pay for videos too
Figure 16: Paid users of video or music streaming websites, May 2016
20s and 30s are more willing to pay for online videos or music
Figure 17: Paid users of video or music streaming websites, by age and city tier, May 2016
Paid users of online videos and online music significantly increased
Figure 18: Paid users and intended paid users of video and music streaming websites, May 2016 and April 2015
Paid users are more conscious of copyright issues
Exclusive content and differentiating price ranges also drive the growth
Figure 19: Paid membership package of streaming video and music websites, August 2016
iQIYI leads in paid membership of video streaming websites
Competitors drive growth using various approaches
Figure 20: Paid video streaming users, by leading websites, May 2016
Paid users of leading video streaming websites tend to overlap
Figure 21: Overlapped paid users of leading video streaming websites, May 2016
QQ Music and Kugou Music lead music streaming websites
Figure 22: Paid music streaming users, by leading websites, May 2016
Paid users skew slightly to males
Figure 23: Paid user profile of leading video and music streaming websites, by gender and age, May 2016
Most paid users have higher education degrees
Figure 24: Paid user profile of leading video and music streaming websites, by income and education, May 2016
ATTRACTIVE MEMBERSHIP BENEFITS
Content is still essential to attract paid members
Being the first to enjoy shows attract consumers in their 20s and 30s
Live broadcasting shows attract more males
Original content sees potential, especially among consumers aged 25-39
Figure 25: Attractive paid membership benefits, content wise, May 2016
Consumers also seek experience – high-resolution content is key
Efficient self-service systems may be more attractive than all-day customer services
Promotion for other products can attract consumers aged over 24
Figure 26: Attractive paid membership benefits, experience and additional benefits, May 2016
ACTIVITIES WHEN WATCHING ONLINE VIDEOS
Consumers prefer being in audience rather than content contributors
No significant city tier difference
Figure 27: Activities when watching online videos, May 2016
Males and consumers aged 25-39 are more likely to use social media when watching online video
Bullet screen comments are popular among 20-24-year-olds
Figure 28: Using bullet screen comments and social media when watching video, by demographics, May 2016
Relatively few consumers would click on advertisements when watching online videos
Figure 29: Activities when watching online videos (continued), May 2016
High earners are more likely to purchase products appearing in videos
Consumers who purchase products in videos tend to be active social media users
Figure 30: Advertisement-related activities when watching video, by demographics, May 2016
ATTITUDES TOWARDS ONLINE MEDIA
Attitudes towards online videos
Going comprehensive is not necessary anymore
Increase exposure on social media
Who are more likely to watch advertising videos?
Figure 31: Attitudes towards online videos, May 2016
Value perception is similar across leading video streaming websites
Figure 32: Agreement on “Paid membership of video websites is good value for money”, by paid members of leading websites, May 2016
Attitudes towards online news
People are not giving up traditional media
Online news providers to increase user loyalty
Consumers show low tolerance for advertisements in online news
Figure 33: Attitudes towards online news, May 2016
Attitudes towards copyright issues
Consciousness of copyright yet to be fostered
More sophisticated consumers are willing to pay to show respect
Figure 34: Attitudes towards copyright issues, by demographics, May 2016
MEET THE MINTROPOLITANS
Mintropolitans are more interested in online radio, games and e-books
Figure 35: Penetration of online media, by consumer classification, May 2016
Mintropolitans are more willing to pay for membership
Figure 36: Paid users of video or music streaming websites, by consumer classification, May 2016
Mintropolitans are willing to pay for more privileges
Figure 37: Attractive paid membership benefits, by consumer classification, May 2016
Promotional videos are more appealing to Mintropolitans
Mintropolitans do not show significant preference for online news
Figure 38: Attitudes towards online videos and online news, by consumer classification, May 2016
Mintropolitans show higher recognition for the author
Figure 39: Attitudes towards copyright issues, by consumer classification, May 2016
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Abbreviations