On July 11, 2019, the China ISC released its “China Internet Development Report 2019”. The number of Chinese net users has reached 829 million by the end of 2018. Last year, 56.63 million net users were added, and the Internet penetration rate was 59.6%.
This report covers the development of various aspects such as network audio and video, online games, mobile application market, and online travel. We have found some trends worthy of our attention.
1, both websites and domains are decreasing
As of the end of 2018, the total number of websites in China was 5.23 million, down 1.9% from the end of 2017. At the same time, the total number of .cn domain names increased by 1.9%, but the total number of domestic domain names was 37,927,527, a decrease of 552,828, or a decrease of 1.4%. In the past decade, the number of websites in China reached its peak in 2017 and began to enter a slowly decreasing inventory stage. The reason for this trend is that Internet users are increasingly inclined to use mobile devices.
2, the top 2 AI market are vision recognition and intelligent voice
The scale of China’s artificial intelligence market is about 33.9 billion yuan, an increase of 52.8% year-on-year in 2018. The market share of computer vision recognition is the highest, accounting for 34.9% of the total market size. Intelligent voice closely follows computer vision recognition, accounting for 24.8% of the overall size of the artificial intelligence market.
3, mobile phone shipments are decreasing
Last year, China launched a total of 764 new models, which is a 27.5% decrease. At the same time, the overall shipment volume of China’s mobile phone market was 414 million, down 15.6% year-on-year. The decline in mobile phone shipments is also a global phenomenon. In the past three years, despite the launch of flagship new products and cost-effective models every year, shipments have declined year after year.
4. where are the money for mobile Internet users?
Mobile shopping is already the main channel for mobile Internet users to spend money, accounting for 77.77% of the market structure. The market for mobile shopping reached 885 million yuan, but the growth rate of 45.94% is still slightly slower than that of 2017. The mobile internet market is focused on mobile lifestyle services, mobile entertainment, traffic fees and mobile marketing.
5, on the per capita use time, WeChat ushered in the opponent
The top ten app penetration rates of China Mobile App Active Users are: WeChat, Alipay, QQ, iQiyi, Mobile Taobao, Tencent Video, Youku Video, WiFi Universal Key, Weibo, Sogou Input Method. WeChat ranked first in national applications with a penetration rate of 93.19%, but today’s headlines surpass WeChat for the first time in 28.4 hours of per capita usage.
6, different regions, different preferences of net users
The preference of Internet users in first-tier and above cities for banking services such as integrated services, payments, and securities is much higher than that of second-tier cities and below. Internet users in first-line and above prefer mobile radio and audio-reading, and Internet users in second-tier and below prefer casual games and video entertainment.
7, the growth rate of the mobile game market has slowed sharply
Due to the tightening of the number approval, the regulation of online games has gradually tightened. Last year, the size of China’s online game market was about 287.1 billion yuan, a year-on-year increase of 21.9%, and the growth rate was 9.7% lower than the end of 2017. Mobile games accounted for 66.8% of the online game industry, but mobile games also fell 35% in 2018. The PC online game market grew by 37.8% year-on-year, and the growth rate dropped by 20% from the end of 2017, and the growth slowed down noticeably.
8, 53.1% of users are willing to pay to watch online videos
In 2018, the market size of online video increased by 39.1% year-on-year to reach RMB 6.88 billion. The earliest online video payment service in China was launched in 2010. Until 2018, the proportion of online video paying users in China reached 53.1%, an increase of 23.8%.