China’s video entertainment market regroups for growth after transitional 2024

China’s video entertainment sector paused for breath in 2024, as total consumer spend dipped 4% to RMB202 billion (equivalent to 28 billion US dollars). But the story doesn’t end there. A new report from Futuresource Consulting reveals an industry in motion, with a shift in focus rather than a loss of momentum. From evolving platform strategies to new monetisation models, China is actively repositioning for more sustainable, long-term growth.

While a sharp drop-in box-office revenue contributed to the overall dip, the market’s digital foundations remain robust. Pay-TV still accounts for the largest share of value, while transactional (including premium) video offerings are showing signs of renewed and vigorous growth.

“The overall numbers tell only a small part of the story,” says Anastasia Budash, Lead Market Analyst at Futuresource Consulting. “There’s a clear rebalancing taking place, one that prioritises efficiency, diversified revenue and smarter content delivery. From digital rentals to short-form video monetisation, we’re seeing platforms adapt to a more complex and competitive environment.”

Box office falters, but rebound in sight
Theatrical admissions dropped 22% in 2024, as the number of film releases fell. However, 2025 opened with strong momentum, led by the record-breaking Ne Zha 2, and while full-year recovery to 2023 levels remains unlikely, Futuresource forecasts a 5% CAGR in box office revenue through to 2029.

Government support and regional production initiatives are also expected to play a role, with new policies welcoming Hong Kong and Macao investment in domestic film production.

SVoD faces saturation, shifts focus to monetisation
With close to 400 million subscriptions in 2024, China’s SVoD market is increasingly mature. Growth is now coming not from new subscribers, but from better monetisation per user. Platforms are diversifying through ads, premium tier upgrades, merchandise, early-access models and even location-based entertainment.

Despite flat subscriber forecasts, Futuresource projects 2% annual revenue growth for SVoD through to 2029, with AI innovation and content personalisation playing a critical role in sustaining engagement.

Transactional video gains momentum
While small in overall market share, digital transactional video saw a standout performance, growing 29% in 2024 to reach RMB0.6 billion. Premium VoD formats are gaining traction, and Futuresource expects double-digit growth to continue through to 2029, as platforms lean on high-value releases to complement their subscription offerings.

Building for value, not just volume
For 2025, Futuresource forecasts a return to growth, with total market revenue expected to rise 7% year-on-year. By 2029, China’s video entertainment sector is projected to reach RMB238 billion, supported by incremental gains across digital, Pay-TV and transactional segments.

“After years of rapid expansion, the market is now taking a more considered path,” says Budash. “We’re seeing a stronger emphasis on lifetime value, ecosystem play and targeted innovation. This isn’t about chasing scale for its own sake, it’s about building smarter, more resilient models for the future.”

To learn more about Futuresource Consulting’s Video Insights: China report or to make a purchase, please Imad at imad.sarwar@futuresource-hq.com or book a meeting here.

Press Contact: Nicola Finn, Marketing Manager, Futuresource Consulting, nicola.finn@futuresource-hq.com

About Futuresource Consulting
Futuresource Consulting, established in the 1980s, is a leading research and consulting firm specialising in global market analysis, forecasts and strategic insights. With a deep understanding of emerging trends and technologies, Futuresource helps businesses navigate complex markets and make informed decisions.