According to Futuresource, the uptake of SVoD in China is being driven by the young consumers, with some 66% of SVoD users being in the 16 to 35 age group, plus there is a growing need for premium content. The concept of SVoD is being driven by Alibaba, plus search engine company, Baidu and Le TV. Each is estimated to have in excess of 10 million paying subscribers.
US and International films are a key driver for consumer SVoD, with 56% of Chinese citing this as the main reason for subscribing. Typical monthly subscription costs for the service is relatively cheap ranging from $1.50 to $3.00.
Broadband penetration reached 54% of Chinese households by the end of last year. Also at the same time, the installed base of digital media adaptors reached almost 44 million units representing approximately 10% of households, and Smart TVs in households was close to 32%.
