Last Updated on October 9, 2024
China has a digital-centric business ecosystem, with online video content at the core of its consumption patterns.
With 97% of the country’s internet population streaming videos virtually, it has become an essential marketing tool for foreign brands attempting to connect and engage with more local consumers.
This overwhelming demand and growth ultimately led to the rise of many Chinese video streaming platforms in Mainland China. It opened new business opportunities to expand beyond traditional marketing channels.
Read along as we discuss the largest online video platforms in the Chinese market and how marketers like you can utilize them.
Chinese Online Video Market Overview
Typical Western video platforms are not accessible in China due to the censorship implemented by the Chinese government. However, that does not mean that Chinese consumers are deprived of their own video hosting services.
China’s most popular streaming platforms typically come from local tech giants like Baidu (iQiyi) and Alibaba (Youkou).
On top of that, over 1.01 billion local internet users in China watch online videos. In fact, domestic video platforms have seen a tremendous increase in Chinese audiences over the years, with an average user spending about 168 minutes each day streaming short video content.
In a 2023 survey by Statista, around 46% of local respondents viewed short video content as a credible source of the latest news. This demand extends to long-form media, with premium video content subscriptions continuing to surge since the pandemic.
While some may think that short video platforms are heavily dominated by younger audiences, it’s worth noting that some surveys suggest otherwise. Another study conducted in September 2023 reveals that 70% of the respondents aged 50 and older are consuming videos online.
How Can Chinese Video Streaming Platforms Help Your Brand?
Advertising Campaigns
Like social media platforms, video streaming sites in China offer different advertising options that foreign companies can use to achieve their marketing objectives.
The ad formats you can select often depend on your chosen applications. They range from interactive media banners and paused ads to short video carousels.
Example of an ad on iQIYI redirecting to Addidas Taobao store
Professional & User-Generated Content
There are over 884 million digital shoppers in China, and their purchasing decisions are often easily swayed by content uploaded on short video apps and live-streaming platforms. These promotions are even more effective if recommended by industry professionals.
As you know, these content platforms often have a large user base. Another excellent strategy to maximize this reach is to produce direct collaborative content with a video hosting service or an internet television company.
If a massive video content production isn’t in your budget, opting for Chinese streaming platforms that allow UGC is another alternative to gain traction in the market.
Video Content Marketing Strategy
If brands seek a younger Chinese audience, establishing a presence on popular online video platforms could be a worthwhile investment.
In addition to posting short videos on these Chinese streaming platforms, companies can address questions and inquiries about their products through user comments or live streaming sessions.
Example of brand content and user-generated content on Bilibili (Source: BeautyMatter)
Releasing brand messaging and advertising content through these video platforms must be done with utmost caution and care.
Although Chinese viewers in this market aren’t resistant to branded promotions, your campaigns must be creative enough to catch the attention of your intended audience. Otherwise, they’ll be lost in the crowd of generic ads and will not be seen as genuine or credible.
You must also ensure that the content you release follows industry trends to generate maximum traction within the Chinese market. However, don’t forget that not all top Chinese streaming services have the features to upload promotional campaigns, as most have shifted to producing original content.
5 Leading Online Video Platforms in China
1. iQiyi
Founded by the Chinese tech giant Baidu, iQiyi is one of the best Chinese streaming platforms. It’s known for high-quality video content and is dubbed the Netflix of China, with over 500 million monthly active users.
Chinese consumers use this video-hosting platform to watch various content, from original drama series to popular variety shows, movies, animations, and cartoons.
Its dominance was further solidified in 2021 when its user consumption rate reached 6.4 billion hours per month. By March 2024, iQiyi reported 112 million daily subscribing members, including around 700,000 trial members.
However, in a strategic move, the platform stopped emphasizing subscriber numbers. They stated that this metric no longer aligned with their broader goals. Instead, they focused on user engagement and content consumption.
Today, iQiYi is an important video platform among businesses because of its varied advertising options.
Although it doesn’t allow direct uploading of content, marketers can decide to launch promotions via in-feed ads, opening screens, carousel banners, paused ads, and many more.
2. Youku-Tudou
The merger between China’s two biggest online video streaming websites at the time, Youku and Tudou, was acquired by Alibaba Group at the end of 2015.
This business move gave the local tech giant access to an even larger user base. It also expanded Alibaba’s growing portfolio of media interests and strengthened its already dominant position in the Chinese digital industry.
Youku Todou is an excellent addition to your digital marketing strategy, mainly because the platform has a wide range of short video and banner ads suitable for marketing and advertising purposes.
As of February 2024, Youku-Tudou reported approximately 461 million monthly active users, putting it at the forefront of China’s online video market. For comparison, in 2022, the platform had a reported 421 million active users, showing substantial growth and continued relevance in an increasingly competitive industry.
Nearly 60% of these users are under 30 years old, which means the platform is more than capable of attracting a young, tech-savvy Chinese audience. This consumer segment is a prime target for brands looking to advertise products or services related to lifestyle, fashion, technology, and entertainment.
Although the platform became famous for its user-generated content creation features, it has since shifted its focus to original production.
Today, approximately 70% of Youku-Tudou viewers regularly watch TV shows, movies, and variety shows. This signals a strong preference for professionally produced, long-form content over user-generated videos.
3. Tencent Video
Tencent Video is among the largest Chinese streaming platforms, with 435 million monthly active users. Despite facing a slight drop in paid subscribers, from 120 million in October 2022 to 117 million in December 2023 (a 1.7% decrease year-on-year), it continues to dominate.
Unlike other Chinese streaming platforms that thrive in producing original online dramas, Tencent Video is also known for getting streaming rights for foreign films, TV shows, and sports broadcasts. It also focuses on reality shows and ACG-related content.
Among video hosting services in China, Tencent Video solidified its position as a top industry player, earning a brand index score of 96.63 out of 100. A recent consumer survey shows that 65% of respondents selected it as their go-to SVOD platform.
For brands looking to reach younger audiences, this is Tencent Video’s major selling point: 75% of its active users are under 40 years old, with over one-third of this consumer segment under 24 years old.
Tencent Video provides numerous ad formats that cater to different marketing goals and budgets. An ad content on this platform can appear as a splash screen upon opening the app or switching pages. It can also be shown as short videos before the media starts playing or as product promotions on the recommendations tab.
4. Le.com (formerly LeTV.com)
Founded in 2004, Le.com was originally a subsidiary of LeEco, a leading online video-centric hardware and software company. It was one of the first Chinese online video companies to purchase TV show rights, with the aim to provide local users with exclusive content.
While Le.com doesn’t command the same massive audience as platforms like iQiyi or Tencent Video today, it has carved out a niche for itself. Currently, the platform offers over 100,000 TV drama episodes and 5,000 films.
Its true strength lies in integrating industry-related videos into the platform. Unlike most other platforms, Le.com includes content on technology, automotive industries, and cooking tutorials.
This unique approach attracts a more diverse audience who may be interested in educational and specialized content beyond mainstream entertainment.
5. Bilibili
Bilibili is more similar to popular short video platforms than the other streaming apps we discussed. Given its UGC-dominated interface, local users and industry professionals often dub it Chinese YouTube after Youku shifted to traditional video hosting.
As of the first quarter of 2024, this Chinese video platform has garnered around 341.5 million monthly active users. Notably, over 80% of its users are part of Generation Z, which means they are highly engaged and trend-driven.
The average user spends at least 87 minutes daily on the platform, which indicates that consumers are drawn to its mix of long-form, short-form, and live-streaming content.
Besides long-form and short-form videos, the platform also produces fully licensed media, from documentaries to animated shows.
Its popularity as a video streaming website has led major foreign brands like Dior, Chanel, and Estée Lauder to launch marketing campaigns on the platform. Some of these international companies have an official account on Bilibili dedicated to posting marketing content.
Other Video Streaming Platforms for Short-form Content
While it’s true that Chinese consumers seek high-quality content, no one can deny that the modern digital landscape favors short-form over long-form video productions. This trend is something foreign brands must take note of, especially if they intend to reach a broader audience in China.
Here are other video streaming channels you can consider:
Douyin
With approximately 755 million users using its services, Douyin is undoubtedly China’s largest short video platform. Having experienced global popularity as Tiktok, the app is no stranger to foreign brands promoting using its features.
Live streaming on Douyin
It’s also a UGC-dominated platform, giving businesses an easier route to connect and engage with their target audiences. Marketers can also leverage its live-streaming functions to build more buzz around the brand, primarily because 765 million users in China prefer this content format.
On top of that, Douyin boasts many reliable influencers and industry experts with massive fan bases. Brands can tap into specific target markets by launching KOL collaborations, such as in-depth product reviews, that many digital shoppers in China seek nowadays.
Kuaishou
Although not as globally known as Douyin/Tiktok, Kuaishou has amassed over 504 million monthly active users over the past few years. It also works as a great marketing tool alternative, seeing how its reach is more concentrated in lower-tier cities and towns.
Short-videos and live streaming on Kuaishou
Like Douyin, this platform’s primary functions involve short video and live-stream content. However, unlike its rival, Kuaishou’s marketing campaigns should focus on Millenials aged between 25 and 44 since this demographic is its highest user base.
It also features an e-commerce integration that marketers can utilize for different marketing goals and drive higher brand sales.
The Evolution Of Chinese Streaming Platforms
Transition to paid subscribers
Many of China’s video streaming platforms have already transitioned from ads-based models to paid subscription services. The display-ad business model is reaching its saturation point, and the number of new users has started to stabilize over the past decade.
Seeing as impression-based advertising revenues increase when more users visit the website and stagnate or decrease when they don’t, China’s major video platform players knew they had to diversify their revenue structure to survive the long business game.
VIP Membership fees on Youku
Therefore, the big companies are set on replacing yesterday’s advertising revenues with income related to user-facing offerings such as premium subscriptions. They encourage users to sign up for VIP membership for an added-value service.
The market’s major players have tried different approaches, but adding paywalls to selected new releases has been the most widespread. However, as anyone would imagine, no one would pay to watch online media if said media was available elsewhere for free.
Transition to self-produced content
After being one of the first companies to purchase TV show rights to provide users with exclusive content, LeTV continued to set the pace in the industry by announcing that 70% of their new releases would be self-produced or co-produced.
Youku and Tudou began making original content years ago, but what characterizes this new wave of self-production is the fact that the market’s biggest players, including Tencent, Youku-Tudou, iQiyi, and LeTV, have all established their own production companies, knowing their self-produced content will be cheaper to possess and easier to monetize (selling adaptation rights or licensing rights, etc.).
The shift towards self-produced content has impacted online video trends and encouraged market players to expand their businesses and search for new financial opportunities.
Your Digital Marketing Partner In China!
Choosing the right Chinese video platform to collaborate with and utilize for your marketing campaigns can be challenging, especially with many major market players to choose from. These apps have different target audiences and features that only local experts can understand and navigate.
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At Sekkei Digital Group, we understand the subtleties inherent to the Chinese video market – including consumer behaviors and the ever-evolving trends that shape it. With our extensive expertise in this niche, we offer you the avenue to unlock your brand’s potential and secure a formidable position as a leading entity in the industry.
We offer comprehensive services to empower your marketing strategies in China. From crafting compelling ad campaigns to harnessing the power of search engine platforms and social media channels, we provide the digital solutions you need to thrive. Contact us today to learn more!
References:
6 Chinese Streaming Platforms to Amplify Your Business
Chinese streaming platforms
Fundamentals of Tencent Video Marketing
How Luxury and Fashion Brands Can Better Leverage Bilibili in China