5G set to boost China’s digital revenue

Source: Xinhua | 2019-06-06

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 Wilson Chow, PwC global head for telecom, media and technology industries.

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 South Korea 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.