The number of Chinese netizens reaching 513 million has stopped falling

On January 16th morning news, on January 16, 2012, the China Internet Network Information Center (CNNIC) released the 29th Statistical Report on Internet Development in China (hereinafter referred to as the “Report”). The "Report" shows that as of the end of December 2011, the number of Chinese netizens exceeded 500 million to reach 513 million.

The report mentioned that the Internet penetration rate has increased by 4 percentage points compared with 2010. Compared to the average annual increase of 6 percentage points since 2007, the growth rate has dropped. In particular, it is worth noting that the number of websites in China has stopped falling in the second half of 2011 and has picked up quickly.

The number of netizens exceeded 500 million, and the growth has entered the platform period. According to the Report, as of the end of December 2011, the number of Chinese netizens reached 513 million, and the number of newly added netizens reached 55.8 million; the Internet penetration rate increased by 4 percentage points from the end of last year to 38.3%. . The number of mobile Internet users in China reached 356 million, a year-on-year increase of 17.5%. Compared with previous years, the overall increase in the number of Internet users in China has entered the platform period.

The scale of Internet users in China continues to expand, but the growth rate has gradually slowed down. According to the “reports” analysis, the Internet penetration rate will reach its peak among the several types of population that have boosted the rapid increase in the number of Internet users in the past five years, while the acceptance rate of the Internet among people of other ages and education levels will hardly reach the young and highly educated groups. The level has caused a slowdown in the growth of Chinese Internet users.

The total number of websites has rebounded and the CN domain name is now turning point. According to the “Report”, as of the end of 2011, the size of the Chinese website reached 2.296 million, an increase of 20% from the end of 2010. After more than a year of decline, in the second half of 2011, the scale of the website has shown a steady upward trend and is expected to enter a new growth cycle. At the same time, the country's top-level domain name. CN's registration volume also began to turn upwards: the end of 2011. The number of CN domain name registrations reached 3.53 million compared with the growth of 26,000 in mid-2011.

The resurgence of website scale has benefited from traditional enterprises’ emphasis on the Internet, construction, and application promotion. On the other hand, the scale of the website has rebounded after the bubble was squeezed and evaporated, and China’s Internet industry will be more Health, network applications will be more solid, and development will be more robust.

Users of group purchases have not decreased their enthusiasm and their traffic has not yet brought profits. According to the “Report”, in 2011, the number of users of group purchases in China reached 64.65 million, an increase of 244.8% year-on-year. The enthusiasm of group purchase users remained unabated, but the number of group purchase websites began to decline in the second half of the year. The analysis of the "Report" pointed out that due to problems such as low thresholds and weak restrictions on group purchase services, together with relatively large initial investment in group buying websites, the capital market as a whole has turned cold, and negative market factors have emerged, resulting in a significant drop in the number of group buying websites.

Although the traffic is large, although the popularity is sufficient, it still faces the embarrassing situation of profitability. The "Report" believes that after the network buy-out of the industry "baptism" in 2011, the industry will seek new balance and stability. The entry of other Internet service providers represented by shopping websites and travel bookings will squeeze the living space of small group buying websites, while group buying websites with clear positioning and core competitiveness will still be favored by the market.

Entertainment applications continued to decline, and online video bucked the trend In 2011, while the utilization rate of most online entertainment applications continued to decline, the usage rate of online video was in a trend of contrarian growth. The development momentum of the online video industry was relatively good. The "Report" shows that in 2011, the number of users of entertainment applications such as online music, online games and online literature has increased slightly, but the usage rate has declined. In contrast, the scale of online video users increased by 14.6% from the previous year to 325 million, and the usage rate increased to 63.4%.

The increase in user size is a good signal for the online video industry. However, in terms of industry development, online video is still facing greater challenges. The "Report" pointed out that as the major video sites need to aggregate high quality and more copyrighted content to obtain high traffic, the copyright price of the online video industry has risen and operating costs have risen sharply. At the same time, video advertising prices are low and other profits have been made. The model cannot be matured in a short period of time. As a result, the online video industry as a whole is in a state of deficit. This situation is still difficult to change.