China’s Internet industry continues to be in a state of rapid development. In 2006, the number of Chinese Internet users exceeded 150 million, with 50% of these users between the ages of 18 and 35. China’s Internet market is also transitioning from a narrowband to a broadband market with over 30 million of the 57 million total connected users having broadband access.
As an emerging service market, China’s Web 2.0 has shown great development potential and in 2006 the market size reached US$62.8 million. According to IDC’s forecasts, Chinese Web 2.0 market is predicated to reach US$645.8 million by 2011.
Since the beginning of 2006, IDC said it has observed a growing number of new start-ups offering a wide variety of services in the digital marketplace. IDC estimates that there are more than 2,000 Chinese “home-grown” Web 2.0 services, as MOP, Xunlei, Youku, Dianping, Hipihi and others.
“Web 2.0 provides a platform for users to share content and to work interactively. It balances the content contributed by users in a more effective way and turns concentrated media content production into social production. Furthermore, with the rise of social networks, online users’ in-depth involvement and contributions have brought consistent growth in registered members and visitors”, says Jacky Huang, Senior Analyst of Cross Products & Vertical Research, IDC China
