Free ad-supported streaming TV (FAST) - China

China

Highlights

Revenue in the Free ad-supported streaming TV (FAST) market market in China is projected to reach US$1.53bn in 2024.
Revenue in this market is expected to exhibit an annual growth rate (CAGR 2024-2029) of 16.99%, leading to a projected market volume of US$3.36bn by 2029.
In a global context, the majority of revenue will be generated the United States, with an anticipated figure of US$5.24bn in 2024.
The average revenue per user (ARPU) within the Free ad-supported streaming TV (FAST) market market in China is projected to reach US$8.84 in 2024.
Furthermore, in the Free ad-supported streaming TV (FAST) market market, the number of users in China is expected to total 189.4m users by 2029.
User penetration in this market is forecasted to be 12.1% in 2024, with expectations to increase to 13.3% by 2029.
In China, the rapid growth of Free ad-supported streaming TV (FAST) reflects a significant shift in consumer preferences towards accessible and diverse digital content.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

In recent years, the Free ad-supported streaming TV (FAST) market in China has experienced significant growth and development.

Customer preferences: Chinese consumers have shown a growing preference for streaming TV services that are free and supported by advertisements. This can be attributed to the increasing popularity of online video platforms and the desire for cost-effective entertainment options. Additionally, the convenience and flexibility of streaming services allow users to watch their favorite shows and movies at their own convenience, without the need for traditional cable or satellite TV subscriptions.

Trends in the market: One of the key trends in the FAST market in China is the emergence of local streaming platforms that offer a wide range of content, including both domestic and international TV shows and movies. These platforms have been able to attract a large user base by providing free access to their content and generating revenue through advertising. Furthermore, some platforms have started to produce their own original content, catering to the preferences and tastes of Chinese viewers. Another trend in the market is the increasing competition among streaming platforms. As more players enter the market, there is a greater variety of content available to consumers. This has led to a shift in power dynamics, with platforms vying for exclusive content rights and investing in original productions to attract and retain viewers.

Local special circumstances: China has a unique media landscape, with strict regulations and censorship policies. This has influenced the development of the FAST market, as platforms have to navigate these regulations to ensure compliance. Additionally, the Chinese government has been actively promoting the development of the digital economy, including the streaming industry, which has further spurred growth in the market.

Underlying macroeconomic factors: China's booming economy and rising disposable incomes have contributed to the growth of the FAST market. As more people have access to smartphones and high-speed internet, the demand for streaming services has increased. Furthermore, the COVID-19 pandemic has accelerated the adoption of digital entertainment platforms, as people spent more time at home and sought out new sources of entertainment. In conclusion, the Free ad-supported streaming TV (FAST) market in China has experienced significant growth due to customer preferences for free and convenient entertainment options. The emergence of local platforms, increasing competition, and unique regulatory landscape have shaped the market's development. Additionally, underlying macroeconomic factors such as China's growing economy and the impact of the COVID-19 pandemic have further fueled the demand for streaming services.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers video ad formats from services that offer free content supported with advertisements.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use market data from industry reports and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. Then we benchmark key countries or regions (United States, China, Europe, Asia, and Africa) results with country-specific advertising organizations or associations. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, internet users, and digital consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.