User Scale and Utilization Ratio of Online Video/Mobile Online Video Dec. 2015 – Dec. 2016 10,000persons 70000 73.2% 74.5% 80% 60000 65.4% 71.9% 50391 54455 49987 50000 60% 40000 40508 40% 30000 20000 20% 10000 0 0% 2015.12 2016.12 Number of users of online videos Number of users of mobile online videos Usage rate of online videos (by all Internet users) Usage rate of mobile online videos (by all mobile Internet users) Source: Statistical Survey on Internet Development in China 2016.12 Figure 63 User Scale and Utilization Ratio of Online Video/Mobile Online Video Dec. 2015 – Dec. 2016 In 2016, under the supervision of related national departments, the online video industry as a whole developed in a sound and orderly manner, featuring the following three aspects. First, in terms of video contents, major video websites took a strategic approach to self-produced drama and started to focus on producing quality contents of their own. From January 1 to November 30, 2016, a total of 16,938 episodes belonging to 4,430 online dramas put 19 on record by video websites, showing an explosive growth compared with that in 2015 , according to the online audio-video program recordation database of Network Division of the State Administration of Press, Publication, Radio, Film and Television (SARFT). In addition, self-produced online programs were made more artistic, enjoyable and professional. With the brand and quality-work awareness enhanced, some online dramas were listed among annually hit dramas. Next, in terms of broadcasting modes, quality contents based on video websites will be first played on video platforms and change the audience and then be broadcast free of charge by the websites and platforms, with a new win-win mode for video websites and platforms coming into being. Video platforms have gradually developed their own video-playing systems. VIP members 19 From January 1 to September 30, 2015, a total of 6,658 episodes belonging to 549 online dramas kept in the 76 recordation database by the SARFT. The 39th Statistical Report on Internet Development in China

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