The Subscription Video on Demand (SVOD) market in China has experienced remarkable growth over the past few years, driven by increasing internet penetration, a growing middle class, and a rising appetite for on-demand video content. As the demand for entertainment and digital content continues to rise, the SVOD market is evolving with new players, enhanced content offerings, and the integration of cutting-edge technology.

This report provides an in-depth analysis of the SVOD market in China, covering market size, growth drivers, key players, trends, and future prospects.

Overview of the SVOD Market in China

Subscription Video on Demand (SVOD) services allow users to access a wide range of television shows, movies, documentaries, and other content for a recurring subscription fee. The market in China, like other parts of the world, has become a central part of how consumers access entertainment. Traditional cable television is being replaced by internet streaming platforms, driven by the proliferation of smartphones, smart TVs, and high-speed internet connections.

Market Size and Growth

In 2023, the SVOD market in China was valued at approximately USD 11.5 billion, representing a significant share of the global SVOD market. The growth of this market is largely driven by the increasing number of digital content consumers and the popularity of platforms offering localized and international content. China is the largest SVOD market in Asia, and its growth is expected to continue in the coming years.

• The SVOD market in China grew at a compound annual growth rate (CAGR) of 16% from 2020 to 2023.
• In 2023, the total number of SVOD subscribers in China surpassed 230 million, accounting for over 15% of the global SVOD user base.

The market is poised for further expansion, with projections indicating that the market value will reach USD 20 billion by 2026, as both domestic and international platforms expand their offerings to cater to Chinese viewers.

Key Drivers of the SVOD Market in China

The growth of the SVOD market in China can be attributed to several key factors, including changing consumer behavior, the rise of mobile viewing, the shift from traditional television to streaming services, and the increasing importance of localized content.

Changing Consumer Behavior

Consumer behavior in China has shifted significantly in recent years, with a growing preference for on-demand content over traditional broadcast television. This change in viewing habits is largely due to the convenience and flexibility of streaming services, allowing users to watch content at their own pace, on their own schedule, and across multiple devices.

• In 2023, over 70% of Chinese internet users reported using streaming services, with many preferring the flexibility offered by SVOD platforms over linear TV.
• The younger generations, particularly Millennials and Gen Z, are the primary drivers of this shift, with streaming services increasingly becoming their preferred medium for consuming entertainment.

The demand for binge-watching content, user-friendly interfaces, and a growing variety of options has made SVOD platforms a central part of the entertainment ecosystem in China.

Mobile Viewing and Internet Penetration

The proliferation of mobile devices in China has played a significant role in the rapid growth of the SVOD market. With over 1.6 billion mobile connections in the country, the demand for mobile-optimized streaming platforms has skyrocketed, particularly as smartphones have become more affordable and capable of delivering high-quality video streaming.

• Mobile devices account for approximately 65% of all SVOD viewership in China, as more users access content through smartphones, tablets, and smart TVs.
• With internet penetration exceeding 70% in 2023, the availability of high-speed internet and 5G technology has further enhanced the viewing experience, allowing for smoother streaming and higher resolution content.

As mobile viewing continues to dominate, streaming platforms are investing in mobile-friendly features, including shorter content formats and interfaces designed for ease of use on smaller screens.

Shift from Traditional Television to Streaming

The shift from traditional television to streaming services is one of the most significant trends in the Chinese entertainment industry. As consumers increasingly embrace online platforms for their entertainment needs, the decline of traditional TV viewership has become more pronounced, particularly among younger demographics.

• In 2023, online video consumption surpassed traditional television viewing in China, with the total daily time spent on streaming platforms exceeding that of cable and satellite TV.
• SVOD platforms offer a wide range of content, including exclusive shows, movies, and documentaries, which further contributes to the erosion of traditional TV viewership.

The rise of streaming has forced traditional TV networks and broadcasters to adapt by launching their own streaming platforms or partnering with existing digital services.

Content Localization and Globalization

One of the major drivers of the SVOD market in China is the increasing availability of localized content. To cater to Chinese audiences, streaming platforms are investing in the production and acquisition of local content, including Chinese-language films, TV series, and documentaries. This content localization strategy has been crucial in attracting a large number of subscribers.

• In 2023, 40% of the content on Chinese SVOD platforms was local or regionally produced, including popular Chinese dramas, variety shows, and films.
• Global streaming platforms like Netflix, Amazon Prime Video, and Disney+ are increasingly investing in Chinese content to appeal to local tastes, often in partnership with Chinese production companies.

Additionally, international content is also popular, with Chinese audiences consuming a wide variety of foreign shows and films. Platforms that offer both domestic and international content are seeing increased subscriber growth, thanks to their ability to meet diverse consumer demands.

Key Segments of the SVOD Market in China

China’s SVOD market is diverse, with different segments targeting various types of viewers. These include general entertainment, sports streaming, kids’ programming, and more niche offerings like documentaries and independent films. Below are the major segments of the market.

General Entertainment

General entertainment is the dominant segment in China’s SVOD market, encompassing a broad range of content, including drama series, comedy shows, movies, and reality TV. This segment appeals to a wide audience, from young adults to families, and is typically available through both local and international streaming platforms.

Market Demand and Trends

In 2023, general entertainment content accounted for approximately 60% of the total SVOD subscriptions in China. Chinese SVOD platforms such as iQIYI, Tencent Video, and Youku have dominated this segment by offering a diverse range of local and international content.

• Chinese dramas, including historical dramas, romance series, and variety shows, are immensely popular among domestic viewers.
• The increasing demand for high-quality content, including original programming, has led platforms to produce exclusive shows that cannot be found elsewhere.

The general entertainment segment will continue to be the largest portion of the market, with growing investments in original content and increased international distribution.

Sports Streaming

Sports streaming has become an important segment of the SVOD market in China, especially with the country’s growing interest in international sports leagues and events. Live streaming of sports events, including soccer, basketball, and winter sports, has attracted millions of viewers.

Market Insights

In 2023, the sports streaming market in China was valued at approximately USD 1.8 billion, growing at a CAGR of 12%. Major global sports events like the FIFA World Cup, the Olympics, and the NBA have driven demand for live sports streaming services.

• Platforms like iQIYI Sports, Tencent Sports, and Migu Video are some of the key players in this space, securing broadcasting rights for major sports events.
• In addition to traditional sports, e-sports has also gained significant traction in China, with millions of viewers tuning into live-streamed gaming competitions and tournaments.

The increasing popularity of sports streaming, especially with mobile access, has significantly changed how Chinese viewers consume live sports content.

Kids’ Programming

The kids’ programming segment has become a growing focus for streaming platforms in China, with an increasing number of parents turning to SVOD services for educational and entertainment content for their children. Platforms are offering a range of age-appropriate programming, including animated shows, educational videos, and interactive content.

Market Growth and Trends

In 2023, the market for kids’ programming on SVOD platforms in China was valued at approximately USD 1.5 billion. This segment is expanding rapidly as children’s content continues to gain popularity on platforms like Youku, iQIYI, and Tencent Video.

• The demand for interactive and educational content is growing, with platforms offering a mix of entertainment and learning materials.
• International children’s programming, including popular animated series like “Peppa Pig” and “Paw Patrol,” is also popular among Chinese viewers, alongside local productions.

As parents become more selective about what their children watch, the kids’ programming segment is expected to continue to grow, with a focus on safe, educational, and age-appropriate content.

Niche Content (Documentaries, Independent Films, etc.)

Niche content, including documentaries, indie films, and specialized programming, has also gained a foothold in China’s SVOD market. As Chinese consumers seek diverse viewing experiences, platforms are increasingly investing in documentary and independent film production.

Market Dynamics

Niche content represented around 10% of the total SVOD market in China in 2023, but it is growing in importance as more viewers seek unique, thought-provoking programming. Platforms like iQIYI, Netflix, and Amazon Prime Video offer a growing library of documentary films and series, catering to a more niche audience.

• Documentaries focused on topics like history, nature, technology, and human rights are becoming increasingly popular, particularly among young urban professionals and students.
• Independent films from both Chinese and international filmmakers are attracting a dedicated audience that values alternative, thought-provoking content.

The rise of niche content is shaping the future of the SVOD market, with viewers increasingly looking for content that aligns with their specific interests and values.

Key Players in the SVOD Market in China

The SVOD market in China is dominated by both domestic and international players. Local companies have a strong foothold, but international platforms are increasingly making inroads into the market by offering localized content and forging partnerships with Chinese production companies.

iQIYI

iQIYI, often referred to as the “Netflix of China,” is one of the leading SVOD platforms in the country. The platform offers a wide range of content, including Chinese dramas, variety shows, international films, and documentaries. iQIYI also produces a significant amount of original content, which is exclusive to its platform.

• In 2023, iQIYI had over 120 million paid subscribers, making it one of the largest SVOD platforms in China.
• iQIYI’s revenue in 2023 reached approximately USD 5.3 billion, with a growing proportion coming from its subscription-based services.

iQIYI continues to be a dominant force in the Chinese SVOD market, thanks to its strong content library, international partnerships, and investment in original programming.

Tencent Video

Tencent Video, part of the Tencent conglomerate, is another major player in China’s SVOD market. The platform offers a wide variety of content, including Chinese films, TV shows, and international content. Tencent Video also invests heavily in producing original content, such as exclusive dramas, variety shows, and live events.

• In 2023, Tencent Video had approximately 130 million paid subscribers, with its revenue in the SVOD sector reaching around USD 6 billion.
• The platform has made significant strides in securing exclusive streaming rights for major sports events, including the NBA and the English Premier League.

Tencent Video’s strong backing from its parent company and its investments in both content and technology make it one of the key players in the Chinese SVOD market.

Youku (Alibaba)

Youku, part of the Alibaba Group, is a leading Chinese video streaming platform that offers a mix of licensed content, original programming, and user-generated videos. Youku has a large focus on high-quality Chinese content and has successfully integrated e-commerce elements with its video offerings.

• Youku’s paid subscription base reached approximately 60 million in 2023, and its revenue from subscription services was estimated at USD 2.4 billion.
• The platform also features exclusive content related to Alibaba’s retail ecosystem, merging entertainment with e-commerce.

Youku’s integration with Alibaba’s e-commerce empire offers a unique advantage, as the platform connects entertainment with online shopping and digital marketing.

Netflix and Amazon Prime Video

While international SVOD services like Netflix and Amazon Prime Video face strong competition from local platforms, they have still managed to attract a dedicated audience in China. These platforms offer localized versions of their content, including subtitled and dubbed Chinese content, as well as a range of international films and shows.

• Netflix and Amazon Prime Video each had a small but growing user base in China in 2023, estimated to be around 15 million paid subscribers collectively.
• Both platforms are investing in Chinese content and collaborating with local production companies to expand their reach in the market.

Though their market share is smaller compared to domestic players, Netflix and Amazon Prime Video continue to pursue opportunities in China by adapting their content to local tastes and preferences.

Regulatory Landscape

The Chinese government plays a crucial role in regulating the digital content and SVOD market. The government has implemented several measures aimed at controlling the types of content that can be streamed and ensuring that content meets Chinese cultural and political standards.

Content Restrictions and Censorship

SVOD platforms operating in China must adhere to strict content regulations, including guidelines on what can be broadcast and the portrayal of sensitive topics. The government monitors content for compliance with social, political, and cultural norms.

• Foreign SVOD platforms must partner with local Chinese companies to distribute content, with Chinese authorities closely scrutinizing the content that is made available to viewers.
• Platforms must also implement content filtering systems to block prohibited material, including content related to politics, violence, or content deemed contrary to Chinese values.

The regulatory landscape remains a key factor in the operations of both domestic and international SVOD platforms in China.

Future Outlook for China’s SVOD Market

The future of the SVOD market in China is promising, with continued growth expected in both domestic content production and the adoption of streaming services by the broader population. Key trends shaping the future of the market include the increasing demand for localized and exclusive content, the rise of mobile and smart TV usage, and the integration of new technologies like AI and VR into the viewing experience.

• The rise of 5G networks and enhanced internet infrastructure will further enhance streaming quality, offering viewers faster speeds and higher resolution content.
• As the middle class continues to expand, the demand for premium content and subscription-based services will increase, providing opportunities for both local and international SVOD platforms.

The SVOD market in China is poised for continued expansion, driven by technological advancements, evolving consumer preferences, and the ongoing growth of digital content consumption.