As China has grown, so has its media and entertainment (M&E) industry.
Demand for M&E content – both traditional and digital – is surging, and all of China’s M&E sectors are growing. The vibrant M&E industry is expanding more rapidly than the country’s economy as a whole.
Add to this China’s nearly 600 million online consumers – the largest internet market in the world – and the future prospects for consumption of M&E products and services are staggering. The breadth and scope of digital offerings in the country, from online video to social media, are as great as anywhere.
These factors, combined with gradual regulatory reform, provide greater opportunities for domestic and foreign M&E companies than ever before. Both have responded by increasing their investments in the industry. In many cases, domestic and global M&E companies are partnering to achieve market success.
However, there are significant challenges. M&E companies must:
- Keep up with evolving consumer preferences in a diverse marketplace
- Establish a fair price for their products and services
- Manage significant operational and financial risk
- Navigate a complex regulatory environment
Through conversations with Chinese and global M&E industry leaders and our own analysts, we have identified four key factors and associated best practices to help M&E companies build a roadmap for success in China:
- Build strong brands
- Succeed in digital
- Form and operate successful partnerships
- Navigate the regulatory landscape