SVoD services are quickly becoming a force in China, according to the latest Futuresource analysis.
Futuresource claims that the Chinese home video market is in the midst of a ‘cultural revolution’, with the growing acceptance and uptake of paid-for SVoD services.
The analyst states that the key drivers for this shift are a combination of demand from younger viewers and the fact that SVoD is the new battleground for Chinese giants Baidu and Alibaba.
Alibaba acquired the Youku Tudou SVoD service in 2015, while Baidu owns the iQiyi SVOD service.
Futuresource also notes the absence of leading global SVoD players Netflix and Amazon Prime Video, both of whose expansion into China, the analyst says, is hamstrung by local legislation dictating that 70 per cent of the content carried must be local content, and that overseas organisations operating online in China must use local data storage facilities and domestic equipment.
Looking ahead, Futuresource sees the Chinese SVoD market as having huge potential for growth, fuelled by its finding that two-thirds of SVoD users are in the 16 to 35 age group, a demographic increasingly interested in high quality, premium content and crucially not deterred by the concept of paying for access.