Page 356 - 2018 White Paper on the Business Environment in China
P. 356
8 White Paper on the Business Environment in China Sports, Media and
2.12 Culture,
Entertainment
Background technology, construction of cinemas, the already high
but increasing rate of Internet penetration as well as the
Recent trends in China’s culture industry near complete coverage by traditional TV broadcasters.
include virtual reality (VR), web This has been reflected in the high growth rate in
broadcasting, web dramas and paid online services. revenues: the TV industry grew by 11 percent in 2013,
Chinese companies in the industry are acquiring a film by 32.9 percent in 2014 and gaming by 37.7 percent
number of their international counterparts, turning in 2014. With China’s creative and cultural industries
themselves into the linchpin of the global culture booming in recent years a number of strong, financially
industry. The Chinese government is focusing on the enabled, players have been established within the
growth and protection of those companies in the same majority of the creative and cultural industry “sub-
way as in the manufacturing sector. The people’s pride sectors”. These companies include both private and
in their culture and the government’s efforts to protect state-owned enterprises (SOEs) and are often vertically
it are affecting its cultural industrial policy. “China is integrated within their industry. In many cases, these
becoming increasingly protective in its culture industry companies are already actively engaging with overseas
as well as manufacturing,” the Embassy of the Republic companies to acquire products and services that were
of Korea in China explained, adding, “TV programs until then unavailable within Mainland China (CBBC).
covering Chinese arts and the likes are aired in the
prime time.” At the same time, more cultural content is China’s cultural industry saw more rapid growth
flowing into China from the United States and Japan. in 2016, thanks, in part, to a boom in information
Consumption of the new cultural content in China is transmission services. The sector’s combined revenue
expected to soar based on VR, web broadcasting and amounted to 8.03 trillion yuan in 2016, up 7.5 percent
web dramas. The size of the Chinese VR market reached from 2015, the National Bureau of Statistics (NBS) said
2.08 billion yuan in 2016 and is estimated to reach in a statement. The growth rate was higher than the 6.9
5.5 billion yuan in 2020. At present, the growth of the percent achieved in 2015. The NBS tracks some 50,000
Chinese VR market is being led by hardware and the companies across 10 cultural sectors—six that offer
development of content for hands-on VR experience cultural services and four involved in the manufacturing
is accelerating as well. The ratio of paid video content of cultural products. Cultural services saw robust
is on the rise, too. The number of Chinese using paid growth. The revenue from information transmission
video platforms is likely to increase from 100 million to services increased the most by 30.03 percent year-
250 million and the market is forecast to expand from 22 on-year, followed by cultural and artistic services, and
billion yuan to 60 billion yuan between 2017 and 2020. recreation and entertainment services. Manufacturing
This means that China’s culture industry is calling for of cultural products, although slowing, still accounted
more and more competitive content to be provided via for nearly two thirds of the sector’s total revenue. The
Chinese companies’ distribution networks (Choi). country’s eastern regions contributed 74.4 percent to
the overall cultural revenue in 2016 (Guo).
Cultural Industry
There are other factors beyond domestic consumption
The overall production of the Chinese cultural that are driving China’s interest in the creative and
industry grew from 30 billion yuan in 2003 to 1,807 cultural industries. China is keen to strengthen its
billion yuan in 2013. The industry now accounts for ability to project soft power internationally and as
3.84 percent of GDP. Demand for digital content in said by President Xi “build its capacity in international
China exploded with the introduction of smart phone communication, better use the New Media and increase
356
2.12 Culture,
Entertainment
Background technology, construction of cinemas, the already high
but increasing rate of Internet penetration as well as the
Recent trends in China’s culture industry near complete coverage by traditional TV broadcasters.
include virtual reality (VR), web This has been reflected in the high growth rate in
broadcasting, web dramas and paid online services. revenues: the TV industry grew by 11 percent in 2013,
Chinese companies in the industry are acquiring a film by 32.9 percent in 2014 and gaming by 37.7 percent
number of their international counterparts, turning in 2014. With China’s creative and cultural industries
themselves into the linchpin of the global culture booming in recent years a number of strong, financially
industry. The Chinese government is focusing on the enabled, players have been established within the
growth and protection of those companies in the same majority of the creative and cultural industry “sub-
way as in the manufacturing sector. The people’s pride sectors”. These companies include both private and
in their culture and the government’s efforts to protect state-owned enterprises (SOEs) and are often vertically
it are affecting its cultural industrial policy. “China is integrated within their industry. In many cases, these
becoming increasingly protective in its culture industry companies are already actively engaging with overseas
as well as manufacturing,” the Embassy of the Republic companies to acquire products and services that were
of Korea in China explained, adding, “TV programs until then unavailable within Mainland China (CBBC).
covering Chinese arts and the likes are aired in the
prime time.” At the same time, more cultural content is China’s cultural industry saw more rapid growth
flowing into China from the United States and Japan. in 2016, thanks, in part, to a boom in information
Consumption of the new cultural content in China is transmission services. The sector’s combined revenue
expected to soar based on VR, web broadcasting and amounted to 8.03 trillion yuan in 2016, up 7.5 percent
web dramas. The size of the Chinese VR market reached from 2015, the National Bureau of Statistics (NBS) said
2.08 billion yuan in 2016 and is estimated to reach in a statement. The growth rate was higher than the 6.9
5.5 billion yuan in 2020. At present, the growth of the percent achieved in 2015. The NBS tracks some 50,000
Chinese VR market is being led by hardware and the companies across 10 cultural sectors—six that offer
development of content for hands-on VR experience cultural services and four involved in the manufacturing
is accelerating as well. The ratio of paid video content of cultural products. Cultural services saw robust
is on the rise, too. The number of Chinese using paid growth. The revenue from information transmission
video platforms is likely to increase from 100 million to services increased the most by 30.03 percent year-
250 million and the market is forecast to expand from 22 on-year, followed by cultural and artistic services, and
billion yuan to 60 billion yuan between 2017 and 2020. recreation and entertainment services. Manufacturing
This means that China’s culture industry is calling for of cultural products, although slowing, still accounted
more and more competitive content to be provided via for nearly two thirds of the sector’s total revenue. The
Chinese companies’ distribution networks (Choi). country’s eastern regions contributed 74.4 percent to
the overall cultural revenue in 2016 (Guo).
Cultural Industry
There are other factors beyond domestic consumption
The overall production of the Chinese cultural that are driving China’s interest in the creative and
industry grew from 30 billion yuan in 2003 to 1,807 cultural industries. China is keen to strengthen its
billion yuan in 2013. The industry now accounts for ability to project soft power internationally and as
3.84 percent of GDP. Demand for digital content in said by President Xi “build its capacity in international
China exploded with the introduction of smart phone communication, better use the New Media and increase
356
