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Research Reports
China Media & Technology Outlook 2014
Description
China Media & Technology Outlook 2014
PQ Media’s Emerging Market Intelligence Series (Volume I)
In response to subscriber demand for country-specific drill-down analyses, PQ Media has released the first title in a new multi-report series providing in-depth strategic intelligence covering the state of digital, alternative and traditional media and technology in key emerging markets worldwide. PQ Media’s Emerging Market Intelligence Series delivers exclusive data and insights from high-growth markets in Asia-Pacific, The Americas, and Europe, consistently organized by country, sector, platform, technology and social generation, spanning a decade with historical results from 2007-12 and detailed projections for the 2013-17 period.
PQ Media’s Emerging Market Intelligence Series tracks more than 100 digital and traditional media platforms and channels across nearly a dozen critical high-growth markets, including China, Brazil, India and Russia, among others. Our comprehensive findings are data-rich and form the foundation of essential media business intelligence, as the reports are designed to be synergistic and consistent as far as methodology, definitions, segmentation, datasets, time series and a unique multi-lens perspective on each market based on the industry’s vital growth indicators: media operator revenues, consumer time spent with media and consumer spending on media content and technology.
The first report in the series – China Media & Technology Outlook 2014 – examines the key growth drivers and challenges that lay ahead for Asia’s major economic growth engine. Following a decade of blistering economic growth, China’s media and tech industry began to cool off in the second half of 2012, due to lower demand from its largest foreign markets, many of which have been scrambling to build some momentum after a particularly long recession and a slow recovery that still has executives and economists tentative about the growth outlook for 2014-15, especially in the world’s largest developing economy, where financial, credit and real estate variables loom large this year.
High-growth economies like China are increasingly counting on their own markets to drive consumer demand, as they seek to capitalize on a growing middle class that is buying a wider range of consumer products and services. Research indicates that the number of households in China earning more than $35,000 in real terms will nearly triple to 75 million over the next five years, while there will be almost 15 million households in Brazil and Russia at this income level, and Mexico, Turkey and India will have close to 10 million each. The fast pace of growth and urbanization have already begun to strain public services and infrastructure in some developing nations, as demand for healthcare and education services expands, more skillsets are added to the workforce, and consumer expenditures on communications, culture and recreation grow at almost twice the pace of spending on food.
To really capture the gains from this rising middle class and balance the pressures on scarce resources, emerging markets will need to invest in green technologies and public transport, and improve the environment for business. Young RGM population, growing in wealth, will drive changing pattern of world consumption. It delivers the first-ever econometric view and understanding of the rapid and irreversible worldwide shift toward digital media, and away from traditional. This is just is one of hundreds of valuable Series insights, available to executives responsible for strategic initiatives, new business models, and managing rapid change in the 21st Century, where consumers engage with content on a host of web-connected devices and screens, such as smartphones, tablets, computers and videogame consoles.
Discover why leading media companies, agencies and management consulting firms worldwide have joined as charter subscribers to this new Series. Executives will find answers to these three questions, and more:
- What are the largest and fastest growing digital markets, media sectors, platforms, channels and categories worldwide?
- Which platforms, channels and categories will most likely support sustainable business models, or not, in developed and developing economies?
- How does a company’s business performance look when benchmarked against digital or traditional media sectors, platforms, channels, categories or GDP growth?
Key Findings
China Shrugs Off Economic Cool-Down, as Emerging Middle Class and Young Tech-Savvy Urbanites Keep Fire Burning with Desire for Broadband Access, Rich Media, Smart Technologies; Consumer Demand & Usage Growth Boosts Asia’s Rising Phoenix into World’s Second Largest Digital Media & Tech Market
Propelled by a growing middle class that now have the financial resources to invest in the digital devices, and combined with improvements to the technology infrastructure in major metropolitans, China has become the second largest global digital media & technology market in 2013, reaching $173.18 billion, trailing only the US market and surpassing Japan in recent years.
With decelerating economic growth and no major quadrennial events, such as the Summer Olympics, to act as a catalyst for strong ad growth, total digital media & tech revenues and consumer spend are expected to notch a significantly lower compound annual growth rate (CAGR) for the 2012-17 period (13.5% CAGR) compared with 2007-12 expansion (29.9% CAGR). Despite softer growth, digital media & technology will top $276 billion in 2017, accounting for more than 70% of total media revenues and consumer outlays, compared with 48% as recently as 2007.
As Chinese technology continues to improve and the government consistently upgrades the tech and telecom systems, consumer usage of digital media is expected to climb at a 13.2% CAGR from 2013 through 2017, reaching 8.0 hours on average weekly in 2017, still among the lowest ranked of the 15 largest media and tech economies worldwide because over half the nation will lack broadband internet or smartphone services.
Meanwhile, the growing middle class will chiefly drive a 9.1% CAGR increase of traditional media & tech revenues and consumer spend during the 2012-17 period, reaching $116 billion in 2017. More Chinese workers will be able to subscribe to newspapers and upgraded to HD television sets, despite similar concerns over the economy that are making Chinese consumers pare spending slightly. As a result of the rise in consumer spend, traditional media usage will rise at a 3% CAGR during the forecast period to 41.6 hours weekly in 2017.
Included in the Report & Accompanying Databook:
Exclusive data and analytics covering China’s supercharged media economy markets:
- 2007-17 total spending on consumer-facing digital & traditional media
- 2007-17 digital & traditional advertising & marketing revenue by platform
- 2007-17 consumer media usage of digital & traditional media by platform
- 2007-17 consumer spending on digital & traditional media & technology by category
- China’s global rank in digital media & technology revenues, usage, consumer spend
- PQ Media Digital, Traditional & Total Media Growth Indices™
PQ Media, a leading provider of market intelligence, is a trusted authority on key trends and shifts impacting the changing global media ecosystem. Our global industry reports analyze the media economy from the perspective of three indicative value chain components, two of which are compared in this publication: media company revenues, consumer time spent with media, and consumer spending on media content and technology.