When I-gaming operators are considering entering new markets, the number of Internet users is, understandably, a key piece of information that is taken into account. Inevitably, China features prominently on any list that ranks the bare number of Internet users. But there is much to be gained by delving into the statistics behind this headline figure to learn more about the profile and habits of Chinese Internet surfers.
The source for the statistics in this article is the China Internet Network Information Center’s (CNNIC) 20th Statistical Survey Report on the Internet Development in China (July 2007). CNNIC reports to the Chinese Ministry of Information Industry and produces a twice-yearly report on Internet use in mainland China. CNNIC does this through both online and telephone surveys. For this latest report there were almost 22,000 valid responses to the online questionnaire.
162 million Internet users but still low penetration
By the middle of 2007 there were some 162 million Internet users [see footnote 1. -Ed.] in mainland China. This is an increase of 25 million people since the end of December 2006, which CNNIC presents as an average of 100 new users every minute for the first six months of the year. Whilst these numbers continue a trend of rapid growth, Internet users still represent only around 12 percent of China’s vast population.
In addition, whilst a fifth of Chinese households now have one or more computers--just 13 percent are actually connected to the Internet.
Uneven distribution of Internet users
Of course, these users are not evenly distributed across the country and there are certainly user "hotspots" in specific regions. Unsurprisingly, these places tend to be in the most economically developed urban regions.
Beijing and Shanghai, for example, both have Internet user penetration of almost 30 percent of the local population, much higher than the overall national penetration. The coastal provinces of Zhejiang and Guangdong also have rates of 20 percent, compared to between 5 percent and 9 percent for less developed regions.
Broadband versus dial-up
Across China some 31.6 million users still access the Internet via a dial-up connection, although this figure is falling quickly (down from 39 million at the end of 2006, and nearly halved in number from a peak of 58.8 million at the end of 2004).
Take-up of Broadband continues apace in China and Broadband users (excluding dedicated lines) passed 100 million in the last six months, currently standing at 108 million. Use of mobile telephones and wireless applications to surf the Internet has seen equally rapid adoption, with some 55 million people using such devices [see footnote 2. -Ed.].
The take-up of Broadband and wireless Internet access in China is encouraging for operators seeking to promote the latest generation of online games.
A young person’s world
China’s youth have really embraced the Internet and 70 percent (113.4 million people) of all the country’s Web users are under the age of 30. Looking in more detail at the age of Chinese Internet users: 17.7 percent are under 18 years old; 33.5 percent fall into the 18-24 age range; and 19.4 percent into the 25-30 bracket. Only 11 percent of users are over the age of 40.
User income and professions
Some 75 million Chinese Internet users are classified as being either students (59 million) or unemployed (16 million). This is reflected in the monthly income of Internet users in China.
Two-thirds of Internet users have a monthly income of less than 1,500 RMB (approximately £100, or $200). This figure falls to 46 percent when student users are removed from the statistics.
Cost of access
The monthly cost of using the Internet in China varies greatly. Nearly a quarter of users pays up to 30 RMB (£2.00, or $4.00) per month for access, whilst 37 percent pays between 51 and 100 RMB per month. The most popular method of payment is through an annual package, rather than monthly.
Online gaming
Perhaps the most pertinent statistic for the I-gaming industry is that almost half of users have played games online. Amongst young student users (defined as being between six and 24 years old), this number rises to more than two-thirds of users.
These online games range from simple arcade-style games, through skill games, to the hugely popular massively multiplayer online role-playing games (MMORPGs). The average amount spent participating in these online games is estimated at 84 RMB (£6.00, or $12.00) per month.
Conclusions
I-gaming operators looking at the mainland Chinese market should not be blinded by the simple number of Internet users in the country because it masks a more complicated situation. The younger generation is already happily existing in the online world, which bodes well should the regulatory situation change in the next decade. As ever, the real task will be wading through the mass of users and attracting the attention of the specific section of the online population that you want.
Notes
- (1) "Internet user" is defined as Chinese residents aged six years and over who have used the Internet in the previous six months.
- (2) Survey respondents can select more than one option.