China to remain second media and entertainment market
China will remain the world's second largest media and entertainment market with revenue expected to reach US$435 billion by 2023, PwC's global entertainment and media outlook says.
By then, digital revenue is expected to account for three quarters of the total income of entertainment and media industries in China, up from around 70 percent in 2018.
"Heavy investment in the 5G network will change Internet consumption patterns and increase the market share of video streaming," said PwC global leader for telecom, media and technology industries Wilson Chow.
Internet advertising will grow by around 14 percent each year for the next five years to US$109 billion.
The share of mobile advertising will reach 68 percent, up from around 52 percent last year.
Virtual reality and on-demand video streaming are expected to post the highest annual growth, at 35.9 percent and 20.5 percent, respectively, thanks to 5G.
China's eSports market is forecast to overtake the South Korean as the second largest market by 2020 and will remain the fastest growing sector in the gaming industry with annual increase of 7.3 percent.
Baidu's online streaming affiliate iQiyi, Tencent Video and Alibaba's Youku Tudou are the dominant streaming players occupying a combined 70 percent of the market.
"Competition among leading players in the video streaming sector will intensify as they target subscription users and investment in premium content," commented PwC China entertainment and media partner Jane Kong.
China is expected to become the world's largest box office by 2020 with a total income of US$15.5 billion by 2023.