Emerging Trends on China’s Video Streaming Platforms
Plus: Tesla bets on Tmall, Prada's stealth appeal, and a fast food "5G launch"
China’s streaming platforms saw a marked uptick in viewership after the coronavirus outbreak forced hundreds of millions to stay at home for weeks on end starting in late January, with both viewer numbers and time spent on streaming showing significant increases. Restrictions on new productions and an appetite for relevant content led to the emergence of “cloud” programming across streaming platforms, often featuring celebrities broadcasting from their own homes as they entertained and shared various aspects of their lives under lockdown.
Chinese audiences are likely to continue prioritizing online video as they spend more time at home than before as part of the “new normal,” increasing the competition for quality content as the platforms aim to raise revenues from advertisers and subscribers. Reports from the first quarter of 2020 highlight some of the trends in this space:
More to watch: Streaming platforms aired more new content during the first quarter of 2020. Ent Group reports that the four major streaming platforms (iQiyi, Youku, Tencent Video, and Mango TV) premiered a total of 415 series, movies, documentaries and animations during this period, up 22% from the previous year.
Early access: Last summer, Tencent Video offered fans of its hit fantasy drama “The Untamed” (陈情令) the opportunity to watch the final episodes ahead of their general release for an extra fee, a move that drew complaints from paying subscribers who felt they were being squeezed for money. Despite the backlash, Tencent has continued with the practice, and rivals iQiyi and Youku have been using the tactic as well with their most popular series, betting that even paying subscribers will be willing to shell out extra to stay ahead on their favorite shows.
Short-run dramas: Chinese scripted series have been notorious for their extended episode counts, so much so that regulators recently imposed a limit of 40 episodes per season, and strongly urged producers to stay under 30. While most dramas continue to push the upper limits, the recent success of the 12-episode “If There Is No Tomorrow” (我是余欢水) shows that audiences are hungry for higher-quality content with a faster narrative pace.
For brands, such dramas present a challenge of compressing their marketing campaigns into a relatively short span of two to three weeks. “If There Is No Tomorrow” drew five brand sponsors that were integrated into the storylines, but a number of other brands (including Gucci, BMW and Puma) were given free product placement to generate more interest for the second season.
Derivative programming: The serialization of dramas across multiple seasons is relatively rare in China (at least compared to the U.S.), but networks and platforms are trying to develop new ways of expanding on the valuable IP of popular series.
Spin-offs are emerging as one strategy, while the creation of non-scripted derivative shows is another, such as iQiyi’s recent Peking opera-focused talk show, created to leverage interest in the subject that grew out of the historical drama “Winter Begonia” (鬓边不是海棠红). Both can serve to offer benefits to paying subscribers as well as new opportunities for brands to sponsor content tied to proven IP.
Interested in learning more about China’s streaming video services? Drop us a line and we’ll make sure you’re first on the list for the upcoming CCI Guide to Streaming Platforms in China. Also, reach out anytime if you’ve got a story tip, are interested in contributing, or have any questions or comments!
Mentioned in today’s newsletter: BMW, Fotile, Gucci, Hershey’s, Huawei, Jack & Jones, KFC, McDonald’s, Prada, Puma, Tesla, Tissot.
Trending on Tmall: Tesla’s Virtual Store and Tissot’s Glam Graffiti
Tesla is the latest major global brand to go big on Tmall, launching a new official flagship store on the platform on April 16 to boost its already significant presence in China, where its Model X is reportedly the most in-demand vehicle. While would-be car buyers can’t actually purchase vehicles through the digital storefront, it offers a range of Tesla accessories and branded products (such as car keys and apparel) and serves as a portal for booking test drives.
As part of the launch, the automaker is running an eight-day series of livestreaming broadcasts with giveaways for prizes such as 48-hour test drives, souvenir models and vouchers for electric-vehicle charging stations. This is Tesla’s second time around on Tmall following an attempt to sell imported cars on the platform in 2014, but these days a strong digital presence has become a necessary part of doing auto business in China.
Following on the recent announcement of Gen Z actor Arthur Chen as its new global brand ambassador, Swiss luxury watchmaker Tissot partnered with Tmall Art to launch a limited-edition graffiti gift box. Chen hosted a livestream on Taobao Live to promote the collaboration and invited viewers to share their own mobile phone graffiti art creations for a chance to win autographed watches and gift boxes.
Tmall Art operates as a design platform to connect brands such as Hershey’s and Jack & Jones to the latest consumer trends and artists, aiming to produce high-quality original content and increase exposure to art-brand collaborations.
Brands on Bilibili: McDonald’s Teases a New Phone With “5G” Launch
Last week we noted how McDonald’s jumped in on the trend for meme-filled branded videos on Bilibili, releasing a humorous video promoting its spicy chicken sandwich to debut its official channel on the youth-oriented platform. The fast-food chain followed up with a spoof of another recent phenomenon by teasing a “5G launch” on Bilbili, a knowing reference to the recent spate of high-profile livestreamed mobile phone releases that came about as a result of the cancellation of all live product-launch events.
The “5G” in question was actually a new McCrispy Chicken meal. The campaign played on the similarity between the sound of the letter “G,” the word for chicken in Mandarin (ji), and the word for technology (also ji). The 5 special “technologies” in question? Flavor, freshness, juiciness, crispness, and variety.
As Bilibili grows in popularity, a growing number of brands are seeking to use the platform to connect to its core Gen Z demographic, moving beyond the early tech focus and into a more diverse range of products. While McDonald’s produced its own recent campaigns to draw more attention to its fledgling channel, other food and beverage brands such as Mengniu and KFC have tapped popular creators to integrate their products with high-quality content that already has an established audience, rather than creating branded videos that are more obviously advertisements.
Meanwhile, the platform’s reputation as a top forum for new tech product launches was reaffirmed by Huawei’s recent release of the Honor 30 line of smartphones. Top Bilibili creators Half-Buddhist Fairy (半佛仙人) and Brother Cotton (棉花大哥哥) were among the hosts of an interactive livestream that included the chance to win a phone.
Is Prada a Dark Horse in China’s E-Commerce Race?
Over the past year, Prada has shed its resistance to partnering with Chinese e-commerce platforms. After joining JD.com and Secoo, the Italian fashion house recently launched a flagship store on Tmall, the most important platform for luxury brands.
Prada’s experience reflects long-held concerns among Western luxury brands regarding how to balance exclusivity with the exposure and access provided by digital platforms, though they have come around to understand that Chinese consumers operate by a different playbook.
The Chinese market represents nearly 55% of global e-commerce. That ratio could shift even further as a result of the coronavirus pandemic, which has hit high-end labels such as Prada especially hard — its share price fell to a five-year low in March.
As a result, the brand is taking further steps to meet Chinese consumer where they are, from amping up its digital strategy to working with more young celebrities.
Read more on Jing Daily
Brand Film Pick: “Do We Really Want a Kitchen?”Asks Appliance Brand Fotile
While young, urban Chinese have become increasingly reliant on using delivery services to keep themselves fed, the coronavirus epidemic brought the kitchen back into use for many who may have felt uncomfortable about relying on food from outside during the outbreak. The changing role of the kitchen prompted appliance maker Fotile to start a debate on the topic through its latest film and related social media campaign launched to coincide with Fotile’s brand promotion day on Juhuasuan, Alibaba’s flash sales platform.
Kevin Tsai, a host of the long-running hit debate show “U Can U Bibi” (奇葩说), appears between a series of clips in which individuals, couples and families discussing their reasons for wanting or not wanting a kitchen in their home. One couple prefers not to cook so that they can spend more time on shared interests, while another couple finds cooking together to be a romantic pastime.
The film ends without offering a definitive answer, encouraging viewers to weigh in on the debate via Weibo and presenting Fotile’s products as a solution for those in favor of kitchens as well as suggesting how they can serve infrequent or beginner cooks.
The video drew around 34 million views on Weibo, while the associated hashtag drew more than 110 million views and 71,000 comments on the topic, including participation from other kitchen brands that chimed in via their official Weibo accounts and conducted product giveaways.
News in English
Revenge splurging: LVMH and L’Oréal report that sales of luxury products are rebounding in China as stores reopen. WSJ
China’s Funplus Phoenix is among the five global esports teams being sponsored by BMW in the auto brand’s latest push to expand its presence in the online gaming sector. Venture Beat
Pinduoduo continues its quest to upgrade its image through a new WeChat mini program that highlights high-end products. Pandaily
Tmall is aiming to help 1,000 smaller beauty brands use its digital channels to surpass RMB 10 million ($1.41 million) in annual sales each over the next year. Alizila
As China reopens, brands must be sensitive to changes in consumer values as a result of the coronavirus, such as increased attention to health and wellness and a focus on cost savings. Campaign Asia
Though promoted on various platforms including Youku, Douyin, and Bilibili, the “One World: Together At Home” global charity concert was largely unavailable for viewing in China. Abacus
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