INSUBCONTINENT EXCLUSIVE:
Content creation has seen immense growth in recent years, with a shift in focus from mainstream content providers such as traditional
television studious to internet-era startups either seeking to expand their portfolios or seeking to increase premium user memberships
through exclusive content introduction.
In America, this scene has been predominately owned by Amazon, Netflix and Hulu, introducing
critically acclaimed titles such asThe Man in the High Castle,Orange Is the New BlackandThe Handmaid Tale, respectively, with many other
industry giants scrambling to catch up (with Apple already signing a deal with Steven Spielberg to produce anAmazing Stories-reboot,
Facebook spending as much as $1 billion on originalcontent, Google announcingplansto potentially spend up to $3 million per drama episode
and even Disney with their purportedstreaming service, among many others).
Similarly, in China growing television industry, a select few,
namely Baidu, Alibaba and Tencent, continue to dominate the marketplace in terms of original TV content production
However, the vast majority of Western consumers have never heard of these internet giants or their respective subsidiaries and series,
although this is set to change very soon, particularly with Chinese content currently in the early stages of global distribution.
What
distinguishes China from the rest of the Asian market
There are a variety of unique factors that distinguish China from other marketplaces
around the globe, as well as in Asia
These factors include but are not limited to things such as increasing use of mobile devices for media consumption, increasing numbers in
television consumption and a booming film/television industry primed for explosive growth.
According toeMarketer, Chinese adults will spend
nearly three hours a day using their mobile devices, representing 41.6 percent of their total daily media time, with this same population
spending nearly 40 percent of their daily media time specifically watching television
This heavy emphasis on mobile device usage, combined with an expected jump in digital video time in the next several years, creates a
perfect environment ripe for increased video consumption by China growing population.
Furthermore, the Chinese television industry has
experienced unprecedented amounts of growth in recent years
In fact, the Chinese television sector represents88 percentof the combined film and television industry economic contribution to China,
beingvaluedat more than $35 billion dollars
Internet Protocol Television (IPTV) usage in China is also rapidly increasing,exceeding100 million users in 2017, further fueling growth in
television content creation
Other indicators of Chinese TV industry growth include the December 2017 formation of the Chinese TV Drama Export Alliance, a conglomeration
of Chinese entertainment studios aimed at growing the presence of the Chinese TV productions worldwide, as well as increasing
Chinese-language content being acquired by popular internet video-streaming companies such asNetflix.
The Chinese TV content producing
behemoths
Chinese internet conglomerate Baidu is one of the primary drivers of growth in terms of Chinese television content, particularly
with its iQiyi video-steaming platform
Gaining enough traffic for a U.S.-based IPO raising more than$2.25 billion, iQiyi is one of China largest and most popular video-streaming
platforms, with more than 421 million monthly users and more than 126 million daily users
This high usage has allowed iQiyi to develop extremely popular original television content.
iQiyi has already developed TV hits such asRap
of China,Street Dance of ChinaandHot Blood Dance Crew, three extremely popular reality series watched by millions of Chinese amidst
agovernment banon hip-hop culture and tattoos on television
In fact, Western audiences may now begin to see these shows soon, particularly given a recently announcedpartnershipbetweenRap of Chinaand
American hip-hop trio Migos.
Original content programming has also extended to scripted series, with detective dramas such asBurning
IceandTientsin Mysticbeing renewed for second seasons while simultaneously beingpicked upby Netflix for American distribution just this
Other extremely popular shows produced by iQiyi includeThe Lost Tomb,Evil MindsandUnforgiven, among countless others, with each of these
shows being watched by millions of Chinese viewers
(Note:The Lost TombandEvil Mindshave since beencensoredby the Chinese government.)
The growth of original content, particularly in
China, has huge potential for other technologies such as virtual reality machines and artificial intelligence.
Alibaba is another
powerhouse driving growth within the Chinese TV content industry, with its Youku video-streaming service
Youku currently boastsmore than500 million unique users, along with a powerful distribution network that includes Youku-brandedhardwaresuch
as tablets, routers and IPTV boxes
Youku heavy daily presence in Chinese consumers& lives allows for Youku-produced original content to have a wide audience across China for
distribution.
One of Youku most popular series,Day and Night, partnered with Netflix fordistributionin late 2017, with this partnership
being thefirst Chinese-language seriesto be distributed globally
Other popular content includes historical dramasThe Advisors AllianceandOh My General, as well as fantasy dramaRakshasa Street, based off of
Youku immense popularity in both short video clips, as well as in original content, make it a leader in producing original Chinese
television content.
Internet giant Tencent is a third organization driving television growth in terms of creating original content in China
With Tencent fame originating from the ever-popular WeChat platform, Tencent Video currentlyclaimsan average of more than 137 million daily
active users, making Tencent-produced content important as this original content arms race develops.
Popular shows produced by Tencent Video
include action-adventure dramaCandle in the Tomb, with a record 200 million views inone dayand billions of views since, as well as
historical romanceRule the World, based off an already extremely popular book of thesame name
Tencent Video has even played a role in producing popular variety shows such asThe Tomorrow Children
Television series slated for Tencent Video production in the immediate futureincludeTV-adaptations of novelsThe Tibet Code,Mystery of the
Antiques and mangaPrince of Tennis
Tencent has committed toinvestingin further original content production, growing its portfolio of television content in the years to
come.
However, the Chinese market does not solely consist of productions by iQiyi, Youku and Tencent Video
Popular content provider Sohu TV has also forayed into the original content sphere, producingpopular dramaIndelible Designation anddetective
seriesMedical Examiner Dr
Qin,as well as attempting todevelopa Chinese version in a Saturday Night Live-style format.
Mango TV, another popular Chinese video
platform, has also self-produced a variety of shows, including comedyFashion Riversand dramaGold Matchmaker, as well as an interactiveBig
Brother-styled show calledPerfect Holiday
These two content providers, Sohu and Mango, and their respective offerings are simply additional examples of how original television
content growth is playing a huge role in enhancing digital China.
Elsewhere in Asia…
However, China is not the only country that has
invested significantly in original television content infrastructure (although it certainly is the largest)
Other Asian countries have also taken a mobile-first approach to internet access, and, thus, also have rising rates of television viewership
by mobile device.
In Thailand, LINE app LINE TV has dominated the mobile television landscape, launching a video-streaming service with
original content developmentplansalready underway
In addition, LINE TV has already secured partnerships with local television production studios and channels, marking a shift from its roots
as a streaming service akin to YouTube to one more similar to Netflix and Hulu.
In Indonesia, even transportation giant Go-Jek is entering
the content creation landscape,announcinga content creation production company called Go-Studios to support their content subscription model
In fact, Go-Jek evenannounceda partnership with VICE Media to produce original content, in light of a successful collaboration set for debut
in 2019, entitledWhen We Dance by Joko Anwar.
Implications of original content growth for startups
The growth of original content,
particularly in China, has huge potential for other technologies such as virtual reality machines and artificial intelligence
With Baidu, Alibaba and Tencent making known investments in these specific industries, it would not be a far reach to see both hardware and
software integration within a television program for individual home consumption
Such examples might include a virtual reality headset to view a character perspective in a television series, or an artificial intelligence
automatically suggesting a specific Halloween clothing outfit based off of a consumer preference of television series.
These implications
make the increase in Chinese original television content a milestone, emphasizing both the strength and reach of top Chinese internet
conglomerates, as well as the growing Chinese television industry.
Conclusion
There is immense potential in the original TV content sphere,
with this ecosystem growing increasingly large in parallel with the rate of television being watched on mobile devices in Asia
This has resulted in China top internet conglomerates being forced to not only pay attention, but participate in the original content
creation sphere, releasing high-quality episodic content in order to attract more viewers.
The release of online-exclusive series and their
expanding Chinese audiences have grown to astronomic proportions, with hundreds of television shows being released yearly, with billions of
Only time will tell if these Chinese dramas will achieve the same levels of popularity they enjoy at home, but for now, original Chinese
television content is here to stay, and represents huge monetization potential for Chinese companies on a global scale.
