Technology Apr 30

Lockdown boosts China online earnings

Millions forced to stay at home to halt coronavirus push up the profitability of streaming services

by Xu Yuenai
Lockdown boosts China internet earnings
Stuck-at-home Chinese turned to online services during lockdown 

(ATF) Income from information technology services grew rapidly in the first quarter as the coronavirus lockdown forced people to find entertainment online. 

Movie, music, gaming and other streaming services climbed 16.7%, according to data released by official website of the Ministry of Industry and Information Technology on Wednesday.

Within the industry, internet and related service enterprises earned 215.3 billion yuan ($30.58bn) in the three months to the end of March, up 1.5% year-on-year, and the growth rate dropped 15.8% year-on-year. Operating profit, however, reached 18.44bn yuan, down 24.9%. Investment in research and development was flat, the data showed.

Internet enterprises pulled in 146.6bn yuan in revenue from streaming services, an increase of 11.1%, accounting for 68.1% of Internet business revenue.

Beijing, Guangdong, Shanghai, Zhejiang and Fujian topped the list of regions claiming the biggest share of accumulated income in the sector. They drew in a combined 166.1bn yuan, accounting for 86.6% of the country's total.