| Boston MA |
Ohio |
Milton Keynes |
|
| Strategy Analytics Inc |
Strategy Analytics Inc |
Strategy Analytics Ltd. |
Strategy Analytics |
| 199 Wells Avenue Suite 108 |
|
Bank House, 171 Midsummer Boulevard |
15, rue Reaumur |
| Newton MA |
|
Milton Keynes |
75003 Paris |
| MA 02459 |
|
MK9 1EB |
France |
| USA |
USA |
United Kingdom |
|
| Tel: +1 617 614 0700 |
Tel: +1 617 614 0716 |
Tel: +44 1908 423600 |
Tel: +33 1 53 40 99 50 |
Fax: +1 617 614 0799
Map/Get Directions |
Fax: +1 614 431 2343 |
Fax: +44 1908 423650
Map/Get Directions |
Fax: +33 1 53 40 99 59
Map/Get Directions |
| |
|
|
|
| Los Angeles |
San Francisco Bay Area |
London |
|
| Strategy Analytics Inc |
Strategy Analytics Inc |
Strategy Analytics : Teligen |
Strategy Analytics GmbH |
| 3342 Wimbleton Drive |
2610 Presidio Dr. |
Great West House, Great West Road |
Sebastiansplatz 5 |
| Los Alamitos |
Brentwood |
Brentford |
D-80331 Muenchen |
| CA 90720 |
CA 94513 |
Middlesex, TW8 9DF |
Germany |
| USA |
USA |
United Kingdom |
|
| Tel: +1 617 614 0719 |
Tel: +1 617 614 0732 |
Tel: +44 2081 850402 |
Tel: +49 89 51 51 35 0 |
| |
Fax: +1 925 308 7727 |
Fax: +44 2081 850419
Map/Get Directions |
Fax: +49 89 51 51 35 55
Map/Get Directions |
| |
|
|
|
| |
|
|
|
| Strategy Analytics Inc |
Strategy Analytics Inc |
Strategy Analytics Inc |
|
| Level 18 Yebisu Garden Place Tower |
16F, Gangnam Bldg., 1321-1 |
59-2-102 Beijing Suncity |
|
| 4-20-3 Ebisu Shibuya-ku |
Seocho-dong, Seocho-gu |
No. 30 Litang Road, Xiaotangshan |
|
| Tokyo 150-6018 |
Seoul, 137-070 |
Changping District, Beijing |
|
| Japan |
Korea |
P. R. China 102209 |
|
| Tel: +81-3-5789-5935 |
Tel: +82 2 310 9122 |
Tel: +86 10 8975 5246 |
|
| |
Fax: +82 2 757 7100 |
Fax: +86 10 8975 5246 |
|
| |
|
|
|
| |
|
|
|
|
PK & Wise |
Hinton Information Services |
|
|
6F J's Building |
6F-3 #103 Rueihu Street |
|
|
1487-4 Seeocho-dong Seocho-gu |
Neihu |
|
|
Seoul 137869 |
Taipei 11494 |
|
|
Korea |
Taiwan |
|
|
Tel: +82 2 597 8756 |
Tel: +886-2-27993110 ext. 319 |
|
|
Fax: +82 2 598 9444 |
Fax: +886-2-27995560 |
|
China Eroding US Dominance of World's Biggest Digital Media Co's
However, Google extends dominance over Amazon at top of the list - Yahoo only one of world’s top 10 to see digital media revenues decline
Boston, MA – December 8 2014 – China accounts for two of the six companies with the highest online media revenues and four of the 10 fastest-growing, according to the latest Digital Media Index from global research and advisory firm Strategy Analytics which analyzes revenue trends across 44 public digital media companies.
Google tops the list with $31.4 billion in digital media revenues in the first half of 2014 (up 12% year-on-year), over three times that of nearest rival Amazon at $10.3bn (up 9% y-o-y). Facebook is third with $5.4bn (up 66%), narrowly ahead of Chinese internet service portal Tencent at $5.4bn (up 43%). Web services company Baidu ($3.4bn, up 56%) is the other Chinese firm in the world’s top six, behind Apple’s iTunes ($5.2bn).
Yahoo is the only one of the world’s top 10 to see digital media revenues decline year-on-year (down 3%).
E.g. Google’s online media revenues was $31.4 billion in first half of 2014
Qihoo and Twitter fastest growers
Between them, the 44 companies generated $85.9 billion in digital media revenues in the first half of 2014 – 17% more than the same period in 2013. Among the 44, Chinese internet security software firm Qihoo saw the largest year-on-year rise in revenues (up 123% to $582 million), just ahead of Twitter (up 122% to $562m). Facebook (up 66%) grew third fastest.
Alongside Baidu and Tencent, online media company Sina (up 36%) is the fourth Chinese company among the 10 fastest-growers. US companies Pandora, Blizzard Entertainment, Disney and LinkedIn complete the 10.
“A red-hot Chinese Internet market is challenging the historical dominance of US companies,” said Michael Goodman, Director, Digital Media for Strategy Analytics. “The fact that there are about 2.5x more Chinese than Americans online is a big factor so they’ve been able to hit such heights solely in a domestic market. The big question, and the key threat to US global dominance, is whether they can translate this success outside China.”
Advertising dominates media revenues
Among the 44 companies that publicly provide revenues by category, advertising accounts for 77% of digital media revenues, followed by online games (15%) and video (5%). Music and content delivery networks (the latter such as Akamai and Limelight who serve content on behalf of publishers) split the remaining 3%.
Games experienced the largest year-on-year revenue growth (up 26%) followed by advertising and video (both 24%) and content delivery networks (21%). Music experienced least growth at 9%.
E.g. Advertising revenues grew 24% year-on-year in the first half of 2014 to account for 77% of online media revenues
Revenue splits between the companies differ dramatically; 100% of Baidu’s and Microsoft’s Online Services revenue comes from advertising, compared to 91% for Facebook, 90% for Google, 80% for Yahoo and 60% for Yahoo Japan. In contrast, 100% of Netflix revenue is from online video while 90% of Tencent’s is from online games. Music streamer Pandora also relies heavily on advertising (accounting for over three-quarters (77%) of revenues) whilst user subscriptions, its original business model, accounts for just 23%.
“The Chinese companies have been particularly adept at generating revenues across a variety of services. The fastest mover, Qihoo, for example has done well in both advertising and Internet value-added services, driven by expansion into search and mobile. Ultimately, this increases revenue per customer, a vital component of sustained growth – Baidu, for instance, has upped ARPU 50% over the last year.” said Goodman.
Methodology
Strategy Analytics' Digital Media Index aggregates and analyzes revenue growth trends across advertising, video, music, games, social media and content delivery networks from the quarterly financial filings of 44 digital media companies.
Press release contact
|
|
Michael Goodman |
| Phone number:
+1 617 614 0769 |
| Email:
Contact me |
© 2019 Strategy Analytics