2. 1.Real estate websites improve the industry environment gradually
•In 2002, senior personage have determined: “Even the best real estate
website, its monthly income can not exceeds 500,000 RMB!” . However,
after only three years development, the revenue of Focus.com reached
500,000 RMB per day in 2005
•10 years ago, Chinese real estate industry was lack of standard, the
information asymmetry between developers and owners caused many
problems and disputes constantly
•The real estate website played a role in a tie – it provided an
interactive and innovative platform for both developers and
owners, effectively solved the problem of information asymmetry and
improved the transparency

3. 2. Digital music shocked the traditional music industry
• “Downloading 100 MP3 music songs only costs you 5 RMB, and we
also provide pictures, ring tones, games downloading" –in 2006, in a
small city of southern China. A stall only have a table and a computer,
sales thousands of MP3 music songs, most of them were piratical
content.
•In 2009, the total CRBT revenue is 20 billion RMB in mainland China,
but the income of entire music industry in mainland China is only 200
million RMB

4. 2. Digital music shocked the traditional music industry
•A story of a famous mainland rock star: his first album of sold
700,000 in 2003, while his latest album only sold 3,400 in 2008
• ‘2009-2010 China's Digital Music Industry Report’ from
IResearch shows that over 90% users get music content via
the Internet, only 24.6% of users choose to buy CD

5. 3. Internet Video becomes popular and grows up steadily in China
Now in the living room, bedroom, or in the pub, commercial
plaza, etc, more and more LCD televisions using digital interface
to access the Internet, watching online video instead of the
traditional cable network program
Internet video contents include all kinds of TV drama and
movies, even the latest TV shows. Large amounts of contents
can meet all demands of various users
By the end of 2009, online video users in China
reached 240 million, nearly 40 million users
watch video via internet only.

6. 3. Internet Video becomes popular and grows up steadily in China
•The overall China's advertising market was 216.3
billion RMB, online advertising market share was20.7
billion
•Internet video market share was 0.57 billion RMB,
almost 2.8% of online advertising
•Iresearch forecasts that in 2013 the internet video
market share will increase to 14.9% of total online
advertising

7. 3. Internet Video becomes popular and grows up steadily in China
The number of online video users in China will increase to 394 millions in 2010
more than 80% of total internet users.
48000
50000
Internet user 39400
38400
40000 Online video user
29800 24000
30000
20274
21000
20000
17010
13700
11100 8220
10000
3330
0
2005 2006 2007 2008 2009 2010e

8. 4. QIYI provide the most innovative marketing platform for
all traditional industries
Advertising
Revenue
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