Abstract
This paper uses the core contents of the recently published book titled Market Patterns and Investment Insights of China’s Digital Content Industry in 2020, which is authored by a team at the Chinese Academy of Press and Publication (CAPP) and is one of the most authoritative report about China’s digital content industry. Analyzing the latest development of this industry, this paper re-defines it and focuses on ten segments—online game, animation, online video, short video, streaming, online music, digital reading, news APP, online education and knowledge payment. This paper estimates their investment value on two dimensions (internal and external), including seven level-1 indicators and eleven level-2 ones, and obtains the investment value ranking list of the segments. It systematically expounds the status quo and characteristics of Chinese digital content industry in such aspects as market development, conversion rate, competition, investment and financing tendency, relevant policies and traditional mainstream media reports, and predicts ten market trends. The paper comes to the following conclusion: ① In terms of investment value: short video and online video have the highest score in ten segments; ② Regarding investment prospects: video content, original content, vertical IP incubation are worth the most attention; ③ Regarding prospects, Chinese digital content industry is in the stage of expansion, with short video performing the best and entering the stage of “intensive cultivation”, while content payment may lead a new round of growth.
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Source: open materials from third parties
Source: open materials from third parties
Source: calculated by this paper
Source: Organized based on data on itjuzi.com (https://www.itjuzi.com/investevent).
Source: Some data are calculated according to leading enterprises’ conversion rate, some are from third-party’s open materials directly
Source: Organized based on data on itjuzi.com (https://www.itjuzi.com/investevent)
Source: calculated by this paper. This paper organizes reports on the ten segments by xinhuanet.com, people.com.cn and gmw.cn from January 1 to November 18, 2019, analyzes them, determines their inclination, and divides them into three types—positive, neutral, and negative
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Notes
Limited by length, details such as the selection and measurement of the indicators, valuation standards, calculation methods of the comprehensive results, valuating process and result analysis and comparison of each segment are not elaborated here. For details, please refer to Market Patterns and Investment Insights of China's Digital Content Industry in 2020.
The conversion rate is calculated by this paper: conversion rate of digital reading segment is in reference to that of China Literature; that of knowledge payment segment to the average conversion rate of Ximalaya, Qingting FM, Dedao APP and Lanrentingshu.
In reference to the average conversion rate of leading streaming enterprises including YY.Inc, Inke, MOMO and Tian Ge Interactive Holdings Limited.
The definition of market concentration in this paper is in Table 1. In simple words, market concentration gauges the degree of monopoly in market competition. The higher value, the more intense monopoly. The equation is as follows: sum of operating revenues of top four enterprises in a segment in 2018/total market scale of the segment.
Equity financing: shareholders dilute some equity stocks to new investors in order to bring in new investment.
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Li, Z., Suping, W. China’s Digital Content Publishing Industry: The 2019 Annual Report on Investment Insights and Market Trends. Pub Res Q 36, 258–283 (2020). https://doi.org/10.1007/s12109-020-09717-1
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DOI: https://doi.org/10.1007/s12109-020-09717-1