According to a report from the Ministry of Industry and Information Technology, between January to May, China’s Internet companies’ collective business income hit 471.9 billion yuan ($66 billion). This is a year-on-year increase of 14.9%. The term “Internet companies” collectively refers to Internet and related service companies. The Internet companies (including online music and video, online games, news information, online reading, etc.) hit a revenue from 294 billion yuan ($42 billion). This is a 22% increase year-on-year. They account for 62.3% of the total revenue. In this class, audio and video service companies are showing rapid growth. As for online gaming companies, it is now growing normally after a high-speed growth at the beginning of the year.
Gizchina News of the week
The Chinese Internet business is booming just as it is in other parts of the world. The coronavirus pandemic increased the need for the internet. Many businesses that were not associated with the internet had to use it. Others had to increase the need for internet services. Either way, there is a significant increase in the demand for internet services. All the numerous launch event had to take place online. All these are contributed to the high revenue for internet companies.
On the other hand, online gaming recorded a decline. Well, there was a very high demand for online games at the beginning of the year. At the inception of the pandemic, keeping up with the high demand became impossible. People had to shift their internet resources for other “important” activities. However, the growth of online gaming companies is still steady. This is not a surprise because as more people stayed at home, gaming becomes a necessity.