China's Entertainment and Media Industry: Growth and Expansion

According to PwC's Global Entertainment and Media Industry Outlook 2024-2028 China Summary, China's total entertainment and media industry revenue will reach approximately $576.2 billion USD by 2028. The compound annual growth rate (CAGR) of 5.5% will be higher than the global average of 3.9% over the next five years.

Online Advertising

China's market continued to maintain stable growth in 2024. With clarification of local policies and regulations, China's online advertising market growth will gradually stabilize in the coming years. It is estimated that by 2028, China's online advertising market size will reach approximately $215.8 billion USD with a CAGR of 10.8%.

Factors contributing to growth:

• Rapid development of internet technologies and maturity of value chain
• Short video advertising formats have become more diverse
• Data computing for short video social media platforms has led to more precise ad placement

With the spread of digital lifestyle, China's mobile internet penetration will reach more than 90%, which will have a positive impact on China's online advertising growth. Online video advertising is the fastest-growing component of online advertising domestically, estimated to account for 27% of total revenue by 2028, with a CAGR reaching 12.9% over the next five years.

Over-the-Top (OTT) Video

With the development of technologies like AI and 5G, China's OTT video market is evolving steadily. From 2023 to 2028, the CAGR is expected to reach 4.7%.

Membership management through interfaces has become a major trend in the development of the large-screen OTT service industry, with IoT-OTT large-screen integration greatly expanding use cases and providing users with precise content feeds.

The number of OTT subscriptions is expected to increase by approximately 55 million by 2028, rising from 423 million in 2023 to 478 million.

Video Games and Esports

China is the world's largest video game and esports market. By the end of 2023, China's total number of video game players reached 668 million. Total revenue is expected to grow at a CAGR of 13.3% from 2023 to reach $122.8 billion USD by 2028.

Notable achievements:

• In 2024, China replaced the United States to become the world's largest video game market
• Due to its rapid growth, China's market is set to achieve approximately 47% more revenue than the United States by 2028
• The emergence of eight medal esports events at the 19th Hangzhou Asian Games in September 2023

With support from cultural industry policies and improvements in independent R&D capabilities in the sector, Chinese game products' competitiveness in overseas markets has been significantly enhanced, with strong potential for future expansion.

It's worth noting that this year, the first domestic AAA game Black Myth: Wukong developed by Game Science received acclaim in China and abroad upon its release.

Cinema

With steady recovery of the domestic consumer market, cinema showed a recovery trend serving as a notable indicator of offline consumption. China's box office revenue recovered by 83% to $7.81 billion USD in 2023, constituting 24.14% of global box office revenue.

Q1 2024 achievements:

• The domestic cinema market continued to recover steadily
• Domestic box office revenue reached 14.36 billion Chinese yuan, with 3.14% year-on-year growth
• Cinema attendance was 364 million with 8.15% year-on-year growth

China's cinema revenue is estimated to grow at a CAGR of 7.15% from 2023 to 2028. China's box office impact on global box office rankings has increased, and domestic films still dominate China's box office revenue.

During 2023, 1,801 new screens were added, and this growth is expected to continue during the forecast period. China's film production capacity continues to improve, while film exhibition grows steadily, with gradual expansion of international influence.