IABM China Market Entry Study

IABM China Market Entry Study

Country Research

Detailed business intelligence analysis
Key trends and emerging technologies
Forecast on regional future

IABM China Market Entry Study

Thu 18, 07 2019

This report will enable member companies to form a better understanding of China’s business environment, key stakeholders, and market trends relevant to the broadcast industry.

The study provides IABM members with a varied range of business information about the broadcast and media industry in China. The purpose of this report is to enable member companies to form a better understanding of China’s business environment, key stakeholders, market trends in our industry by presenting otherwise scattered information in an orderly and relevant manner. Moreover, our study aims at providing general information about different forms of market entry to China as well as insights about operational business practices based on a wide range of expert interviews conducted for this study during the first half of 2019.

Report Contents and Structure
The analysis is undertaken by our Head of Insight and Analysis, Lorenzo Zanni, Principal Analyst, Riikka Koponen and Research Analyst, Chiara Raucci. Our study consists of two parts; 1) Market environment in China and 2) Market Entry to China, which discuss the following topics:

  • Market landscape
  • Broadcast and media technology industry in China
  • Future outlook – Broadcast and media technology trends
  • Industry buying groups and sales practices in China
  • Market entry strategies and preparation
IABM China Market Entry Report

IABM MEMBERS READ THE FULL REPORT

As part of their membership, all employees of IABM Platinum, Gold, Silver and Silver100+ member companies have access to the full report (along with our extensive range of Insight & Analysis reports available here). To access, please click the button below (please note, you will need to be a registered and logged in user of the website). If you would like to purchase the report then please click here to find out more.

Executive Summary

Market Landscape

  • In 2018, out of the total population of 1,39 billion, over 800 million people (representing 58% of the total) lived in China’s cities – the largest urban population in the world

  • Since opening up to foreign trade and investment in 1979, China has been among the world’s fastest-growing economies, and in 2010 it overtook Japan as the world’s second largest economy. On average, China has doubled its GDP every eight years and lifted an estimated 800 million people out of poverty since opening up its economy

  • Even though China alone accounted for one-third of global economic growth in 2018, China’s real GDP growth has slowed significantly over the past decade, from 14.2%in 2007 to 6.6% in 2018. According to the IMF’s estimate, China’s GDP growth could fall to 5.6% by 2023, as the country’s economy continues to transition away from investment – and export-led growth toward services –and consumption-driven growth

  • Recently, China has been a target of the Trump administration’s trade policy. At the beginning of 2018, president Trump announced that the government would impose tariffs on imported steel (25%) and aluminum (10%). During 2018, the US administration raised tariffs on about US$ 300 billion of imported goods, mostly from China
IABM China Market Entry Report

Broadcast and media technology industry in China

  • China is the biggest TV market in the world – it accounts for one third of the world’s total TV households. According to the latest government statistics, the percentage of households in China that owned a TV set was 99% in 2017, being equivalent to about 440 million households (average household size 3.1)

  • Broadcasting organizations are all state-owned and directly under control of a new State Council agency called the National Radio and Television Administration (NRTA), which replaced the State Administration of Press, Publications, Radio, Film and Television (SAPPRFT) in a reform in March 2018

  • There are over 2,600 TV and radio stations in China, which are all owned by the state at national, provincial and local level. Nearly all of the TV stations’ funding is commercial, with revenue primarily coming from advertising and basic subscriptions

  • The principal network provider is the public service broadcaster China Central Television (CCTV). CCTV has the largest number of FTA channels offered by a single operator in the country, at 16

  • Over the past few years, China’s TV stations – at the national and local level – have experienced a significant decrease in their traditional TV advertising revenues due to the emergence of OTT platforms and IPTV

  • China is currently in the midst of its “2020 Analog Switch Off Plan” (ASO), officially aiming to switch off the analog signal in big cities by the end of 2018 and in the whole country by 2020

  • Cable connection remains the dominant distribution platform with its 221 million TV households, followed by FTA satellite TV households, the number of which exceeded 136 million as of August 2018

  • China is the largest Pay-TV market in the world by subscriber base; it has a third of the world’s Pay-TV subscribers. The estimated size of China’s Pay-TV market across all technologies at the end of 2017 was 325 million subscribers equating to about 65% household penetration

  • According to the Chinese Internet Network Information Center (CNNIC), the number of internet users in China rose by 30 million in the first half of 2018 reaching 802 million, representing 57.7% of the total population. By comparison, the US has an estimated 300 million internet users. 778 million Chinese (98.3%) internet users used mobile phones to access the internet

  • According to Asia Video Industry Association (AVIA), China’s online video market size by number of active users was estimated to be 596 million at the end of June 2017, representing about 76% of the online population

  • In 2019, China’s telecom industry will be driven by commercial trials and launches of 5G networks, which should be officially launched in 2020

IABM MEMBERS READ THE FULL REPORT

As part of their membership, all employees of IABM Platinum, Gold, Silver and Silver100+ member companies have access to the full report (along with our extensive range of Insight & Analysis reports available here). To access, please click the button below (please note, you will need to be a registered and logged in user of the website). If you would like to purchase the report then please click here to find out more.

Search For More Content



X