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  OTT, SVoD

Rapid expansion and even higher growth potential in China’s SVoD market

By 2019 China is set to have almost double the number of subscription video on demand (SVoD) subscribers of the US. China will have 305m SVoD subscriptions at the end of 2019, compared to 158m in the US. China's SVoD subscriptions per 100 households will stand at 60 in 2019, whereas the near-saturated US market will have a rate of 123. The relatively lower uptake of SVoD in China means that the burgeoning market still has plenty of room for growth.  But revenue generated from SVoD subscriptions in China will be below half of that in the US, however, reaching $8.9bn in China and $20.4bn in the US. This contrast is caused by heavy discounting of an already low starting price. Specifically, one of China's big three online video platforms, iQiYi, has an average discount rate of 33% with an ARPU of just $1.80 compared to a monthly cost net of tax of $2.80.