Online Video Industry Market Grows 6.1% Year-on-Year
User Penetration Rate Reaches a High 98.4%
ReelShort Tops U.S. Downloads in November 2023, Surpassing TikTok
Short-form dramas, each lasting about 2 minutes and providing high immersion, are experiencing explosive growth in China.
On the 28th, the Hong Kong South China Morning Post (SCMP) reported that the China Netcasting Services Association (CNSA) announced at a forum held the previous day in Chengdu, Sichuan Province, that China's short-form dramas have gained popularity overseas, leading the online video industry market size in China to reach 1.22 trillion yuan (approximately 246 trillion won) last year, a 6.1% increase compared to the previous year.
The CNSA also added that there are 757,000 businesses operating in the online video industry in China.
Chao Sumin, Director of the National Radio and Television Administration (NRTA), which oversees broadcasting and internet regulation in China, also attended the same forum and stated, "China's short-form dramas have significantly increased their influence overseas, becoming a new growth engine for the online video industry."
He further emphasized the netcasting industry, saying, "With new business models continuously emerging, it is the most innovative, rapidly developing, and high-potential sector in China," and added, "It also plays a crucial role in strengthening the nation's soft power."
China defines netcasting as an industry that transmits and creates audio and video content online, including services such as video downloads and live streaming, with short-form dramas among them.
Short-form dramas, a new format that emerged in China in 2018, were added to the video content review system by the NRTA starting in 2020, and the market has been growing explosively since 2022.
According to the CNSA, by the end of last year, the number of short-form drama users reached 662 million, a 7.3% increase compared to the first half of the year. Thanks to the rapid growth of short-form dramas, the total number of netcasting users was also recorded at 1.091 billion by the end of last year, a 1.6% increase from the previous year.
The user penetration rate is a high 98.4%, indicating that the netcasting industry continues on an upward trend.
Additionally, the Chinese short-form drama app ReelShort showed remarkable success in overseas markets, ranking number one in downloads in the United States in November 2023, surpassing TikTok.
Gong Yu, CEO of iQIYI, a Chinese online video service (OTT) company, emphasized at the same forum, "Looking at video and movie rankings from various countries, Chinese content is included in the top ranks. This is both our opportunity and pride, and we must firmly seize it."
According to the CNSA, alongside short-form dramas, live streaming linked with online shopping has continued its growth trend, with users reaching 833 million by the end of last year. China's online shopping transaction volume reached 15.52 trillion yuan (approximately 3,130 trillion won) last year, a 7.2% increase compared to the previous year.
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