|
CNNIC
Internet report: the Internet getting personal?
(August
22, 2006)
The latest Chinese Internet user survey published by the country's
Internet watchdog, the CNNIC, reports that China's Internet users
now number 123 million, up 10.8 percent over the last six months.
Compared to the last report in January this year, CNNIC offers a
more candid acknowledgement of China's growing digital divide. The
Internet watchdog is also keen to stress the normalisation of Internet
use with higher proportions of married and older users going online.
What is more, for the first time in recent years there is some evidence
to support this, even if China's average Internet user still belongs
to a fairly specific and narrowly defined social category. The survey
also contains new details on online gaming and points to the increasing
personalisation of Internet use. In this Market Report, China Media
Intelligence offers an independent analysis of the CNNIC report
and identifies the latest trends in the development of China's Internet
landscape.
Sections:
Introduction
At the end of
last month, the China Internet Network Information Centre (CNNIC)
released the latest of its regular six monthly reports on the development
of the Chinese Internet. Even though reports vary slightly each
time in terms of specific content and questions, they nonetheless
have a certain familiarity and predictability to them. However,
despite their familiarity and the fact that each report invariably
confirms a number of well-established trends, they still offer valuable
updates and insights into the current state of the Internet in China
and invariably have some or other intriguing or significant data
to report.
The latest report
is no exception. The general growth figures show a slight spurt
compared to six months ago, they reveal the extent of expansion
of international bandwidth, the continuing conversion to broadband,
the rise and rise of the Internet cafe as a gaming venue and also
the steady increase in home Internet use. The user behaviour figures
confirm some already emerging trends including the gradual rise
of the Internet as a source of entertainment and a slight increase
in e-commerce while the average Chinese Internet user is still likely
to be a male student under the age of 30 with an income of less
than Rmb1,000.
That does not
mean, however, that there is nothing new in the survey. Reading
across different sections of the report there are several indications
of how Internet users are looking for more personalised and individual
services from blogs to personal web pages. This also relates to
the fact that for many young people the Internet is also an arena
of communication and for socialising. The
report also includes some new questions on attitudes towards information
media comparing netizens' and non-netizens' use of other media such
as television, newspapers and magazines, as their primary sources
of information. These questions give some insight into a possible
major shift in the balance of future media consumption. Questions
about Internet user satisfaction also point to some slight negative
shift in the degree of contentment with online content and services.
The report contains
some new questions and information on online gaming including game
preferences related to educational level and some indication of
gaming habits. For instance it becomes clear that a large proportion
of online gamers have been playing for more than five years.
In our last
report on the January CNNIC figures (see China
Media Intelligence, Volume 6, Issue 2 (27/2/05)) we devoted
some attention to the issue of China's growing digital divides.
In January, the CNNIC devoted some attention to the issue for the
first time. However, as we reported at the time (see China
Media Intelligence, Volume 6, Issue 2 (27/2/05)) the CNNIC
offered no realistic vision as to how the divide might eventually
be narrowed. The simplistic argument presented was that since penetration
levels are high in the East of the country and in cities, user numbers
must eventually level off while the West and the countryside start
to catch up, however gradually. In this CNNIC report, there is still
now suggestion of the solution to the problem, but there is a more
realistic, if brief, assessment of the issue acknowledging that
the key urban-rural and East-West digital divides within the country
are actually widening rather than narrowing in terms both of user
numbers and websites or domain names.
The CNNIC has
for years been keen to stress the 'normalisation' of Internet use,
suggesting that gradually the ratios of male to female, single to
married and younger to older users are all lowering. This was true
some years ago as the Internet moved from being a relatively specialist
arena dominated by IT enthusiasts and professionals to the more
broadly used information and entertainment platform that it is today.
However, the ratios in question have for years remained fairly steady.
In this report CNNIC once again declares that normalisation is afoot,
and this time, there is slightly more substantive evidence to support
the claim. However, a look across the range of Internet user characteristics
also leaves itself open to the interpretation that the Chinese Internet-using
public is still a relatively narrowly defined group.
We will visit
these various issues below as well as an overview of the key general
growth figures, user characteristics and behaviour.
Back
to top>>
Key
changes, figures and characteristics
General
growth
The number of Internet users rose by 12 million over the six
months to the end of June this year, bringing the total to 123 million.
This consitutes growth of 10.8 percent over the half year, compared
to 7.76 percent over the second half and 9.57 percent over the first
half of 2005. The overall trend in usern number growth rates has
been downwards since July 2002. Consequently, even if this slight
increase in the growth rate is the largest of its kind since 2002,
it is nonetheless too small and too early to see it as anything
out of the ordinary (see Figure
1).
Broadband access
is now by far the most common way of connecting to the Internet.
Of these 123 million Internet users 77 million now say they use
broadband access compared to a declining 47.5 million dial-up users
and 28.6 million dedicated line users (see Table 1). The scale of
this trend is clearly seen in Figure
2 where the sharp rise in broadband use is matched by the
levelling off and downturn in the other two principal modes of access.
The chart and the statistics also suggests that even though there
are clearly many people using more than one form of Internet connection,
more and more users are starting to use only broadband.
|
Total
(millions)
|
Dedicated
line users
(millions)
|
Dial-up
users including ISDN (millions)
|
Broadband
users (millions)
|
|
123 (111)
|
28.6 (29.1)
|
47.5 (51)
|
77 (64.3)
|
Table
1: Number of Internet users (multiple access mode users counted
in each category). (January 2006 figures in brackets) (Source:
CNNIC, July 2006)
The figures
for the number of computers online tell the same basic story with
dial-up and dedicated line connected computers declining slightly
while 'other' connections, which essentially means broadband, rose
by 25.7 percent to 28.15 million (see Table 2 and Figure
3) over the first six months of the year. This also outstrips
the overall growth rate of 10 percent more computers online in the
same period (also slightly up from 8.55 percent in January this
year).
|
Total
(millions)
|
Dedicated
line
(millions)
|
Dial-up
(millions)
|
Other
(millions)
|
|
54.5 (49.50)
|
6.25 (6.5)
|
20.10 (20.60)
|
28.15 (22.40)
|
Table
2: Number of computers online (multiple access mode users counted
in each category). (January 2006 figures in brackets) (Source:
CNNIC, July 2006)
The almost exponential
expansion of China's International export bandwidth also continued
over the last six months, rising by 57.36 percent over the period
to 214,175M (see Figure 4 and Table
3) compared with 136,106M reported in January this year.
The growth rate is down slightly from 65 percent over the second
half of 2005, but this is nonetheless rapid expansion keeping up
with the greater demands being put on the networks. The largest
expansion was in the CHINANET network with a 73.6 percent increase
to 122,587M from 70,622M six months ago. CHINANET also now accounts
for 57.24 percent of overall international bandwidth, up from 51.89
percent by December 31 last year (see Table
4 ).

Figure
4: Total international bandwidth July 1998 - July 2006 (Source:
CNNIC, July 2006)
Domain names and websites
The total number of domain names was up 13.8 percent to 2,950,500
since January this year, with .com domain names accounting for 48.7
percent of the total and .cn domain names a further 40.3 percent
(see Table 5).
|
Domain
name type
|
Number
|
Proportion
of all domain names (%)
|
|
CN
|
1,190,617 (1,096,924)
|
40.3 (42.3)
|
|
COM
|
1,435,768 (1,202,497)
|
48.7 (46.4)
|
|
NET
|
249,555 (216,533)
|
8.5 (8.4)
|
|
ORG
|
74,560 (76,456)
|
2.5 (2.9)
|
|
TOTAL
|
2,950,500 (2,592,410)
|
100
|
Table
5: Numbers and relative proportions of domain name registrations
by type (Source: CNNIC, July 2006)
CNNIC
gives the usual breakdown of .cn domain names with grade two (erji
yuming) .cn domain names again showing the largest growth from
588,748 to 665,680, accounting for 55.9 percent of all .cn domain
names compared to 53.7 percent in January (see Table
6). There has therefore been a sharp increase in Chinese
domain names over the last year. In July 2005 there were just 622,534
.cn domain names in total and only 293,592 erji yuming. This
gives annual growth in these two categories of 91.25 percent and
127 percent respectively. The only category of domain names in decline
are local government domain names down from 37,167 to 28,175 over
the last six months.
The
total number of websites increased over the last six months by 13.57
percent compared to a relatively modest 2.46 percent over the previous
six months. CNNIC counted 788,400 Chinese websites compared to 694,200
at the end of December last year. The largest growth was in .cn
and .com websites, but the overall proportional distribution is
little changed from the last report (see Table 7). Of the .cn websites,
the most common were once again either just .cn sites or .com.cn
sites which together account for 88.5 percent of the total (see
Table 8).
|
Website
type
|
Number
|
Proportion
of all websites (%)
|
|
CN
|
342,419 (299,530)
|
43.4 (43.2)
|
|
COM
|
352,301 (315,917)
|
44.7 (45.5)
|
|
NET
|
74,304 (60,523)
|
9.4 (8.7)
|
|
ORG
|
19.376 (18,230)
|
2.5 (2.6)
|
|
TOTAL
|
788,400 (694,200)
|
100
|
Table
7: Numbers and relative proportions of websites by type (January
2006 figures in brackets) (Source:
CNNIC, July 2006)
In terms of
the regional distribution of domain names and websites, Guangdong
once again showed solid expansion now claiming slightly higher proportions
of the total number of domain names and websites compared to six
months ago, even if there was a marginal drop in the proportion
of Chinese domain names. Meanwhile there was little change in the
overall rankings of the different provinces either for domain names
or websites (see Table
9 and Table
10 respectively). Beijing, Guangdong, Shanghai, Zhejiang
and Fujian all hold onto their top positions for both domain names
and websites, while the remoter western autonomous regions of Qinghai,
Ningxia and Tibet continue to prop up the tables, with if anything
falling overall proportions of the market. With websites for instance,
the bottom six regions saw their total share drop by 0.3 percentage
points, with none increasing, while the top six saw a collective
gain of 1.4 percentage points of the overall market.
In short, the
heavy concentration of the Internet in the large cities and eastern
coastal provinces shows little sign of change.
User
characteristics: the digitial divide and normalisation
This latter
point goes illustrates that China's digital divide shows little
sign of narrowing, something acknowledged for the first time in
the latest CNNIC survey even if CNNIC still tries to put a familiar
emphasis on the normalisation of China's Internet use. This is not
an entirely coherent position to maintain, although it can be fudged
to some degree.
The acknowledgement
of the digital divide comes in a new section to the report called
'Analysis of China's Internet Development Differences.' In this
section, CNNIC reports that urban Internet penetration rates are
six times those of the countryside and the difference between towns
or cities and rural areas has grown over the last six months. At
the end of December 2005, rural penetration rates were 2.6 percent
compared to 16.9 percent urban penetration and 8.5 percent national
penetration rates. By the end of June, rural penetration was up
to 3.0 percent but urban and national levels up to 18.0 percent
and 9.4 percent respectively (see Figure 5).

Figure
5: Rural-urban Internet penetration rates December 2005 - July 2006
(Source: CNNIC, July 2006)
CNNIC also furnish
a number of other statistics, including rural-urban school penetration
rates, all showing the extent of the rural-urban digital divide.
CNNIC figures for regional penetration rates are just slightly more
encouraging than the rural-urban figures, in that there was a relatively
even approximately one percentage point increase in penetration
rates across the East, West and Central regions of the country,
even if the Eastern region was up at 14 percent by the end of June
compared to 6.5 percent and 6.9 percent in Central and Western China
respectively.
It is clearly
important that the CNNIC should take the rural-urban divide seriously.
However, this does not square with the Centre's continuing claims
that the Internet is undergoing a process of normalisation, that
it is increasingly the realm of a wider range of people spanning
the full range of sociological categories more evenly than in the
past.
There is a small
amount of evidence in the latest survey that can be used to support
the CNNIC claim. Probably most notably, the ratio of unmarried to
married users is down to its lowest level since the CNNIC started
publishing its reports. The proportion of married Internet users
was up by a relatively solid 2.8 percentage points over the last
six months and 3.9 percentage points over the last year (see Table
11 and Figure
6). There may, therefore be some grounds for seeing this
longstanding disparity between married and unmarried users narrowing.
|
Married
|
Single
|
|
44.9 (42.1)
|
55.1 (57.9)
|
Table
11: Marital status of Internet users (percentage). (January 2006
figures in brackets) (Source: CNNIC, July 2006)
The evidence
from non-Internet users, which is always a useful indication of
possible future trends, suggests, however, that we may just be seeing
a wave of married interest rolling over the Chinese Internet landscape.
The proportion of interviewed non-Internet users saying that they
expected to go online within the next half year and who were married
was down from 62.4 percent in January's report to 54.1 percent in
this latest report. Last July the same figure was 53.6 percent.
It therefore seems reasonable to assume that the current peak in
married users reflects the large proportion of married people saying
in January that they would go online in the next six months. It
appears that many of them did. However, the 54.1 percent figure
in this survey suggests the level will not be maintained in the
next survey.
The figures
for the proportions of male and female Internet users offer little
suggestion of change. The ratio of male to female users to the end
of June this year was 58.8 to 41.2, almost exactly the same as six
months ago (see Table 12 and Figure
7 ).
|
Male
|
Female
|
|
58.8 (58.7)
|
41.2 (41.3)
|
Table
12: Gender of Internet users (percentage). (January 2006 figures
in brackets) (Source: CNNIC, July 2006)
However, the
information from non-users, like that for married/unmarried non-users
does not suggest any narrowing of this gap in the future. Indeed,
it would suggest that if anything the number of male users will
rise faster than the number of female users. The number of non-users
expecting to go online within the next six months that were women
was 46.5 percent with 53.5 percent of expected new users being men.
This constitues an improvement on six months ago when the ration
was 41 to 59, but the majority is still with the prospective male
users. This is unlike the situation with married and single non-users
where the majority among users is the minority among prospective
users. Consequently
there is little evidence to support the idea of gender normalisation,
even bearing in mind that there is an exaggerated gender imbalance
in China weighted towards males.
It is also,
however, important to consider the other characteristics of Internet
users when assessing the degree of normalisation. Primarily these
include occupation, age and income. In terms of occupation, the
average Internet user is more likely than ever to be a student with
36.2 percent of Internet users being students up from 33.2 percent
this time last year and 35.1 percent in January's report (see Table
13).
|
Occupation
|
%
|
|
Students
|
36.2 (35.1)
|
|
Enterprise
workers
|
28.9
(29.7)
|
|
Unemployed
|
8.5
(6.9)
|
|
School/College
teachers and administrators
|
7.4
(7.3)
|
|
Civil
Servants
|
6.2
(6.6)
|
|
Public
business workers
|
5.6
(6.5)
|
|
Free
profession (ziyou zhiye)
|
5.3
(4.1)
|
|
Peasants/farmers
|
1.6
(1.4)
|
|
Other
(including military)
|
0.3
(0.6)
|
Table
13: Occupation of Internet users (January
2006 figures in brackets) (Source: CNNIC, July 2006)
NB:
The 'retired' category which accounted for 1.8 percent of Internet
users in January does not appear in this survey
Something that
is very striking in the occupation figures is that only 47.6 percent
of Internet users are regular employees of one kind or another outside
of the education sector, only 1.6 percent of Internet users are
farmers, only 6.2 percent are civil servants and only 5.6 percent
work in public businesses. We have become accustomed to the rise
and rise of student users, who now account for well over one in
three netizens, but it is also revealing to think about how few
of China's Internet users are in major sectors of China's employment
spectrum. In a country where more than 60 percent of the population
- more than 800 million people - are farmers, it is difficult to
think about the normalisation of the Internet when only 1.6 percent
of Internet users are farmers.
The overall
age distribution of Internet users is little changed in the latest
survey. There is a slight further concentration of users in the
18-24 age bracket, largely at the expense of the proportions of
other under-35 groupings. There is some increase in the proportion
of 36 to 50 year olds online, but overall the proporation of under
35's remains at 82.3 percent compared with 82.6 percent in January.
The proportion of under 24's and under 30's also continue to edge
upwards, now at 53.8 percent and 72.2 percent respectively, up from
51.7 percent and 71 percent in January and 53.5 percent and 70.9
percent at this time last year (see Table 14).
|
Age
|
Under
18
|
18-24
|
25-30
|
31-35
|
36-40
|
41-50
|
51-60
|
Over
60
|
|
%
|
14.9 (16.6)
|
38.9 (35.1)
|
18.4 (19.3)
|
10.1 (11.6)
|
7.5
(7.1)
|
7.0 (6.8)
|
2.4 (2.7)
|
0.8 (0.8)
|
|
Aggregate
%
|
14.9 (16.6)
|
53.8 (51.7)
|
72.2 (71.0)
|
82.3 (82.6)
|
89.8
(89.7)
|
96.8 (96.5)
|
99.2 (99.2)
|
100 (100)
|
Table
14: Age of Internet users (January 2006 figures in brackets) (Source:
CNNIC, July 2006)
Compared to
the overall population, China's Interent users are also relatively
highly educated. According to the latest figures, although 17.8
percent have less than an upper middle school (gao zhong)
certificate, more than 31 percent do. A further 23 percent have
a college level diploma (dazhuan) and 24.7 percent the equivalent
of a BA (benke) (see Table 15). Masters and Doctorate level
graduates are much fewer, but that is also true of the general population.
|
Educational
level
|
Lower
than Upper Middle School (zhongzhuan)
|
Upper
Middle School (zhongzhuan)
|
College
Diploma (dazhuan)
|
BA
(benke)
|
MA
(suoshi)
|
PhD
|
|
%
|
17.8 (16.2)
|
31.6 (30.2)
|
23.0 (24.4)
|
24.7 (26.3)
|
2.3
(2.4)
|
0.6 (0.5)
|
|
Aggregate
%
|
17.8 (16.2)
|
49.4 (46.4)
|
72.4 (70.8)
|
97.1 (97.1)
|
99.4
(99.5)
|
100 (100)
|
Table
15: Educational level of Internet users (January 2006 figures in
brackets) (Source: CNNIC, July 2006)
In terms of
Internet users' income, the latest survey shows clear growth in
the proportions of users coming from the lower income brackets (up
to Rmb3,000) (see Table 16). This runs counter to the apparent trend
emerging in the last survey that showed proportional growth among
wealthier users (see China
Media Intelligence, Volume 6, Issue 2 (27/2/05)).
Whereas January's
survey showed the proportions of users earning under Rmb500 per
month, between Rmb501 and Rmb1,000, Rmb1,001 and Rmb1,500 or without
income all down slightly compared to this time last year, in this
survey all but one of those categories shows growth, some of it
strong. At the same time, the overall proportion of users from all
of the higher earning income ranges, from Rmb2,000 upwards, dropped
and in some cases quite significantly. The proportion overall of
users earning less than Rmb1,500 (excluding those with no income)
also rose to 58.6 percent from 50.9 percent in January, in effect
cancelling out the drop shown in January's report and returning
to a similar level as in July last year.
|
Amount
|
<Rmb500
|
Rmb501-1,000
|
Rmb1,001-1,500
|
Rmb1,501-2,000
|
Rmb2,001-2,500
|
Rmb2,501-3,000
|
|
%
|
26.9 (21.8)
|
15.9 (15.7)
|
15.8 (13.4)
|
12.0 (11.8)
|
5.3 (6.9)
|
5.0 (5.9)
|
|
Amount
|
Rmb3,001-4,000
|
Rmb4,001-5,000
|
Rmb5,001-6,000
|
Rmb6,001-10,000
|
>Rmb10,001
|
No
income
|
|
%
|
4.8 (5.4)
|
2.6 (4.5)
|
1.3 (1.8)
|
1.1 (2.3)
|
1.9 (2.3)
|
7.4 (8.2)
|
Table 16: Income
of Internet users (January
2006 figures in brackets) (Source: CNNIC, July 2006)
In terms of
normalisation, the income figures are not particularly informative.
They do suggest that the bulk of Internet users earn an average
or low income but that is no real surprise. For the first time in
the latest report, however, the CNNIC have included figures for
current higher education student Internet user income. These showed
that 48 percent of Internet users still in higher education had
a monthly income of less than Rmb500, 44.6 percent between Rmb501
and Rmb1000, 4.3 percent between Rmb1,001 and Rmb1,500 and no more
than 1.4 percent for any higher income category.
Overall it is
therefore difficult to see any substantial signs of 'normalisation'.
To be fair CNNIC does not push the point very hard, but it does
run through the brief analysis offered in the report as a subtle
underlying theme and interestingly CNNIC chooses to use statistics
from one year ago, rather than those from January's report, for
comparison, figures which tend to show greater growth in married
and female users for example. Nonetheless, in the end one cannot
but conclude that China's Internet users still come from a relatively
narrow category of urban, low income, relatively highly educated
students, business employees and unemployed with a high likelihood
of being male, unmarried and under 35, if not under 30.
User
behaviour and attitudes: personalising the Internet
By far
the most common place for Chinese people to access the Internet
is at home. By the end of June this year more than 72 percent of
China's Internet users were logging on at home compared to just
over 35 percent at work and 29.5 percent in netbars or Internet
cafes (see Table 17). These figures reflect continuing growth in
both home and netbar users, while work users continue their gentle
decline. Although 96.9 percent of Internet users logon with a desktop
computer, 17.9 percent now also use a laptop, indicating the diversification
of Internet access modes.
|
Location
|
Home
|
Work
Unit
|
School/college
|
Internet
cafe/netbar
|
Public
places
|
Other
|
|
%
|
72.2
(70.5)
|
35.1
(37.6)
|
18.9
(19.0)
|
29.5
(27.0)
|
0.5
(0.8)
|
0.5
(0.1)
|
Table
17: Main location for accessing the Internet (January
2006 figures in brackets) (Source: CNNIC, July 2006)
The fact that
more people are using the Internet at home reflects the continuing
growth in PC-equipped homes, the expansion of China's broadband
infrastructure, particularly in the cities, and warming attitudes
towards the Internet and other new technologies among parents and
heads of families. In this latest survey, however, it is also interesting
to see how netbar use is closing the gap on work Internet use. Of
course the trend is unpredictable, but if it does carry on at the
present rate of change then by this time next year there could be
more people using the Internet in netbars than at work. This reflects
the growing tendency to use the Internet less for straightforward
information-seeking than for other entertainment and communication
services of one kind or another (see Table 18).
|
Regularly
used online services
|
Response
(%)
|
|
Surfing
news
|
66.3
(67.9)
|
|
Search
engines
|
66.3
(65.7)
|
|
Email
|
64.2 (64.7)
|
|
BBS,
discussion groups etc.
|
43.2
(41.6)
|
|
Instant
messaging
|
42.7 (41.9)
|
|
Gathering
information (e.g. on products/services, medical, work or government-related
etc.)
|
39.5 (39.8)
|
|
Online
TV and film (including downloads)
|
37.3 (37.1)
|
|
Online
music (including downloads)
|
35.1 (38.3)
|
|
Online
document up/downloads (excluding music, TV, film)
|
33.9 (33.8)
|
|
Online
gaming
|
31.8
(33.2)
|
|
Online
alumnus records
|
26.0 (28.6)
|
|
Online
shopping
|
26.0
(24.5)
|
|
Personal
webpage
|
24.3
(14.2)
|
|
Blogging
|
23.7
(14.2)
|
|
Online
jobsearch
|
20.6
(18.9)
|
|
Chat
rooms
|
19.9 (23.1)
|
|
Online
finance
|
16.5
(14.1)
|
|
Electronic
magazines
|
16.5
(16.7)
|
|
Online
education
|
12.4
(14.1)
|
|
Online
selling
|
11.3
(9.9)
|
|
SMS/MMS
short messaging
|
9.7
(9.5)
|
|
Internet
telephony
|
7.9
(6.5)
|
|
Online
reservations (restaurants, tickets etc.)
|
5.4
(4.6)
|
|
E-government
|
5.4
(5.1)
|
|
Dating,
friendship and marriage agencies
|
4.6
(3.8)
|
|
Other
|
4.3
(4.0)
|
Table 18: Regularly
used online services [communications services highlighted in red]
(January 2006 figures in brackets) (Source: CNNIC, July 2006)
Certainly the
top two cited Internet services in the survey are information gathering
services - surfing news and using search engines. However, search
engines can be used to search for entertainment as well as information
and the proportion of respondents in this survey saying they used
the Internet for news was actually down slightly. Nonetheless, there
is also little sign of entertainment use expanding greatly, especially
if judged by the top entertainment-related services such as video
and music downloads or online gaming. The proportion of video download
service users was up very slightly, but those of both music downloaders
and online gamers were down.
In fact, that
points to one of the striking features of the latest survey. There
appears to be a shift afoot in the use of the Internet increasingly
for communication rather than information gathering or entertainment
purposes. This is undoubtedly related to the increasing popularity
of web 2.0 type interactive protagonist sites and services such
as blogs. In fact, the latest survey figures show a prominent increase
in the proportions of netizens using the Internet for BBS, discussion
groups, instant messaging, personal webpage services and blogging.
The only communication services that showed a downturn were email
and chatrooms, both of which, it might be argued, are being superceded
by new technologies in China - email by text-messaging and chatrooms
by enhanced instant messaging, BBS, blogging and MySpace-like services.
The increasing
popularity of the range of Internet tools for online socialising
and communication points to an ever greater personalisation of the
Internet in China, as in many other parts of the world. Internet
use in China has evolved through the technology phase, when it was
the realm of IT enthusiasts and professionals in the late 1990s,
through the information superhighway phase, when non-specialist
users started to see it as an alternative source of information
to the other media, through to the combined information and entertainment
phase to the diversifying multifaceted information, entertainment,
communication and lifestyle phase in which it is currently developing.
The strongest
growth in popular services revealed in Table 18 above was for personal
webpages and blogging. These in themselves reflect the personalisation
of the Internet with it becoming used more and more as a vehicle
of self-expression, a space for personal presentation and online
social interaction. However, this is not the only aspect of personalisation
occuring with China's Internet, it is simply the latest manifestation
of it. The shift from information towards entertainment that has
occured over the last few years has itself emphasised the personal
with services such as one-to-one gaming, video-on-demand and music
and film downloads taking the lead. All this came after the now
'old' SMS boom which saw the Internet offer personalised news and
information services for the first time. The
steady growth of e-shopping, with 26 percent of Chinese Internet
users saying they now regularly shop online, also reflects the Internet
being put to use for more practical personalised purposes.
There are however,
some interesting new figures included in the latest report relating
to sources of information. Asked what their main source of information
was, 82.6 percent of netizens said it was the Internet, followed
by 64.5 percent who said the television and 57.9 percent newspapers.
The same question asked of non-Internet users yielded responses
of 88.3 percent for television and 35.9 percent for newspapers (see
Table 19
and Figure 8).
Figure
8: Sources of information for Internet users and non-users (Source:
CNNIC, July 2006).
It is therefore
interesting to note not just how many Internet users cite the Internet
as a primary source of information. This is after all not entirely
surprising. What is striking about Figure 7 is that leaving the
Internet aside, non-Internet users are far more heavily dependent
on the television. Netizens are more likely than non-users to look
for information in newspapers, magazines, books or by listening
to the radio, in fact any other medium apart from television. This
points to some quite significant changes in media consumption and
use that will largely map onto generational and rural-urban divides.
Indeed, market reports have recently revealed the trend among young
people away from the television compared to older generations.
Chinese netizens
continue to spend more time online although the amount of money
people spend on their Internet access was virtually unchanged at
Rmb102 per month as opposed to Rmb103.6 per month in January. January's
report found that on average Internet users spent 15.9 hours online
per week. A year ago this was 14 hours and now the figure has risen
to 16.5 hours per week. This is a new record high for Chinese Internet
use and CNNIC is keen to point out that this also exceeds the level
of weekly use in many relatively Internet-developed countries and
reflects the increasing importance of the technology in people's
everyday lives. Increasing use is also reflected in the chart of
the most popular times to go online (see Table
20 and Figure 9).
Figure
9: Times using the Internet January 2003 to July 2006 (Source:
CNNIC, July 2006).
The chart shows
some clear trends towards a levelling out of day time Internet use.
There are still the traditional three peaks of morning, afternoon
and late evening use, with around 74 million people on line during
the latter of these. However, the graph shows that the clear distinction
between the morning and afternoon peaks is disappearing to some
degree. There is now a slight dip at midday, but three years ago
this was a clear three hour trough. The afternoon peak has also
now swollen with more than 40 percent of China's netizens likely
to be online. The morning peak is only fraction higher than in January
and the evening peak is virtually unchanged, if anything slightly
lower than six months ago. All this suggests that there is increasing
use of the Internet during the day, peaking in the afternoon. There
is then a distinct downturn at evening meal time and a peak in Internet
use before most netizens head for bed towards midnight. This creates
a high intensity evening peak with a greater proportion of users
online at one time, even if there are around 30 percent more actual
users betwen 10.00 and 18.00 than between 19.00 and midnight.
If the latest
survey is an indication, the more time Chinese people spend online,
however, the less they seem to be satisfied with online services.
Overall satisfaction was down with fewer users saying they were
very satisfied and slightly more saying they were very unsatisfied.
However, there was at least a slight decrease in satisfaction for
all the features of the Internet listed (speed, cost, security,
content verity and healthiness and personal privacy). The greatest
concerns were surrounding cost, security and personal privacy protection
(see Table
21).
This was also
reflected in responses to the question of what aspects of the Internet
are most objectionable when 29.2 percent up from 19.9 percent in
January and higher than any other category (see Table 22). What
is more, 70.1 percent of Internet users said that their computers
had been attacked by either viruses or hackers in the last six months.
Consequently, 87.7 percent use some kind of anti-virus software
and 71.8 percent a firewall. Only 2.8 percent said they did not
take any security measures at all.
|
What
is the most objectionable aspect of the Internet?
|
Response
(%)
|
|
Viruses
|
29.2
(19.9)
|
|
Pop-up
adverts and windows
|
20.9 (22.1)
|
|
Network
intrusions and crashes
|
12.5
(11.7)
|
|
Online
payment traps
|
9.3 (12.8)
|
|
False
information
|
8.6
(9.3)
|
|
Junk
emails
|
5.9
(8.7)
|
|
Online
frauds, phishing etc.
|
5.3
(6.1)
|
|
Distasteful
content
|
4.5
(5.1)
|
|
Revelation
of private details
|
3.1
(3.7)
|
|
Other
|
0.7
(0.6)
|
Table 22: What
is the most objectionable aspect of the Internet? (January 2006
figures in brackets) (Source: CNNIC, July 2006)
Online shopping
and paying online is also now becoming an increasingly normal part
of Chinese Internet practice. E-shopping took some time to take
off, but with 26.0 percent of Internet users now ranking it as a
regular online activity. Furthermore, 39.9 percent of all Internet
users saw it as a possibility that they would make an online purchase
in the next six months. Of those who have already bought online,
73.8 percent said they prefered online payment by credit or debit
card (see Table 23). The popularity of all other forms of payment
was considerably down on just six months ago.
|
Methods
of online payment preferred
|
Response
(%)
|
|
Online
payment (credit/payment cards)
|
73.8
(61.5)
|
|
Payment
on delivery
|
28.1 (36.1)
|
|
Bank
transfer
|
15.2
(25.8)
|
|
Postal
order
|
12.4
(18.2)
|
|
Cellphone
payment
|
2.4
(3.5)
|
|
Other
|
2.0
(0.9)
|
Table 23: Methods
of online payment preferred (January 2006 figures in brackets) (Source:
CNNIC, July 2006)
Online gaming
Nearly 32 percent
of China's Internet users play online games regularly. This reflects
to some degree the youthful character of China's netizens most of
whom either still are or were until relatively recently students.
Nonetheless, this is a high proportion of gamers. The latest CNNIC
survey included extra questions on online gaming that offer a few
new insights into China's world of online gamers.
One new question
probed how long China's gamers have been playing online games and
found that 48 percent have been playing since 2000 or before while
only 16.6 percent started in the last three years (see Table
24). This reveals a fairly high degree of dedication and
commitment - although some Chinese might argue addiction - to gaming,
but it does not suggest that there is particularly strong growth
in the sector at present. At this rate one can expect a fairly static
level of interest in online gaming.
The survey also
shows that a large proportion of games attract the attention of
users for only a few months before they move onto something different
(see Table
25). Basically the majority of gamers (62.3 percent) say
that they will stop playing any particular game within six months
of starting yo play it, if not before. 46.8 percent said that it
would be within three months. This is clearly a contributory factor
to the high level of competition in the online gaming sector and
demonstrates the pressure on gaming providers to develop new products.
The survey also
found that gamers spent on average 11 hours per week playing games.
This is little changed from the 10.9 hours both a year ago and eighteen
months ago. Hence, eleven hours a week appears to be a fairly constant
average, even if there has been strong growth in the number of gamers
over the last year and a half. At the beginning of 2005, less than
16 percent of China's netizens were gaming regularly (about 15 million
people) compared to today's 32 percent (nearly 40 million people).
Gamers' motivations
also offer some food for thought. Unsurprisingly, 85.8 percent of
gamers said one of their main motivations for gaming was for entertainment.
In fact one might be more surprised by the fac that more than 14
percent of gamers are therefore not gaming for entertainment.
Presumably a good number of these gamers are among the 35 percent
who said they played online games to fill in or pass the time. This
points to a relatively high level of bored youth. Another 15.5 percent
listed making and meeting friends among their main motivations,
which points to the social practice of gaming and Internet cafe
attendance.
The amount of
money spent on gaming appears to have risen considerably over the
last year. In last July's report, 37 percent of gamers said that
their average monthly spending was zero, 24.8 percent said it was
up to Rmb20 and 14.9 percent from Rmb21 to Rmb40. Only 23.3 percent
spent more than Rmb40 per month even if 0.4 percent were spending
more than Rmb500 per month. Without precise figures the exact average
cannot be calculated, but it would be in the region of Rmb30 to
Rm32 per month. In this July's report the only the average is given,
but it is up at Rmb40.7 per month.
More than 63
percent of online gamers are now also playing at home (including
student dormitories) compared to 38.8 percent in Internet cafes.
To some degree this confounds the common perception of netbars as
the prime location for online gaming. Clearly a large proportion
- the majority - of netbar users are gamers and netbars have a central
place in gaming culture and social interaction. However, it is interesting
to note such a high level of home gaming as well. A shocking statistic
for employers is that 30 percent of gamers are playing games at
work (see Table 26).
|
Gaming
location
|
Response
(%)
|
|
Home
(including student dormitories)
|
63.6
|
|
Netbars
|
38.8
|
|
Workplace
|
30.0
|
|
School/college
|
8.3
|
|
Public
places
|
1.9
|
|
Other
|
0.3
|
Table 26: Online
gaming locations (Source: CNNIC, July 2006)
CNNIC has changed
the categories of kinds of games since last summer when similar
online gaming questions were asked. It is therefore difficult to
evaluate trends. However, role playing games maintain a similar
level of popularity (46.7 percent compared to 44.1 percent and 48.2
percent in July 2005 and July 2004 respectively) (see Table 27).
Interestingly, CNNIC point out, though they do not furnish the statistics,
that there is a divide among students (who constitute the majority
of gamers) in their taste for online games. We are told that the
higher the student level, i.e. college level upwards, the more likely
students are to play different kinds of chess games (which recorded
39.6 percent overall popularity). Meanwhile lower level students
(below college level) are more likely to play role-playing games
and different types of leisure games (both 46.7 percent overall
popularity).
|
Kind
of game
|
Popularity
(%)
|
|
Role-playing
(e.g. Chuanqi, Qiji etc.)
|
46.7
|
|
Leisure
games(e.g. Paopaotang, Fengkuang Tanke etc.)
|
46.7
|
|
Chess-style
leisure games (e.g. Chess, intelligence games etc.)
|
39.6
|
|
Instant
strategy (e.g. Diguo shidai, Xingji Zhengba etc.)
|
22.4
|
|
Business
simulation (e.g. Jushang etc.)
|
7.3
|
|
Other
|
2.9
|
Table 27: Popularity
of onine games (Source: CNNIC, July 2006)
Finally, there
are interesting insights into the kinds of criteria that gamers
use to make their gaming decisions. The large majority of gamers
considered qualitative technical features - such as speed, image
or sound quality - of games to be of importance in choosing which
games to play. The criteria of story or content setting of the game
came only sixth in the list (see Table 28). This suggests that game
quality, difficulty and cost all come before issues of game content.
|
Criterion
|
Response
(%)
|
|
Game
connection and operating speed
|
65.0
|
|
Game
picture quality and sound effects
|
62.1
|
|
Game
operating difficulty
|
38.2
|
|
Free
trial available
|
35.5
|
|
Game
balance and fairness
|
30.8
|
|
Story
situation
|
30.7
|
|
Characters
|
24.3
|
|
Good
customer service attitude
|
15.6
|
|
Support
(e.g. chat, shopping, user groups etc.)
|
14.6
|
|
Business
activities
|
7.8
|
|
Other
|
1.2
|
Table 28: Important
criteria for online gamers (Source: CNNIC, July 2006)
Overall there
are few new major insights in this gaming data. However, one does
get a strong sense of a maturing and increasingly sophisticated
sector. This partly comes from the more nuanced questions asked
by CNNIC, but also reflects the more competitive nature of the market,
the increasing number of gamers and the considerable experience
and expectations of gamers.
Back
to top>>
Conclusion
The latest CNNIC
Chinese Internet use and development report shows the extent of
the maturation of the sector. With 123 million users, the Internet
is becoming an ever more important feature of people's everyday
lives. This accounts to some extent for why the Chinese authorities
are becoming increasingly concerned about what they consider undesirable
content and are increasingly cracking down on bulletin board type
forum websites.
However, one
of the clear indications in the latest CNNIC survey is that it is
these kinds of personalisable, individual online social interactive
type websites and services that are increasingly popular with China's
netizens. As we have seen above, there is a trend towards increasing
use of the interpersonal communications possibilities of the Internet
in China. The Internet in China is no longer simply a source of
information and entertainment, but is also an arena for social interaction
and communication. It will be interesting to see how the Chinese
authorities react to and deal with this trend, given that this is
the least controllable and potentially most threatening aspect of
the Internet for them.
Otherwise the
latest report confirms the established understanding of the average
Chinese Internet user as young, more likely male than female, more
likely a student than anything else and more likely unmarried than
married. CNNIC would like to be able to argue that there is a normalisation
of Chinese Internet use, particularly given the maturing market
and the increasingly significant numbers of Internet users. However,
clearly this is not happening. The size of the Internet-using population
continues to grow, but so does the digital divide between urban
and rural areas and between the more and less economically developed
parts of the country. The concentration of Internet users among
young students persists and, if anything, is intensifying.
The steady growth
in e-commerce continues and there are increasing signs that the
Internet is now seen as a convenient and reliable vehicle for at
least some kinds of purchase. That said, the latest report does
reflect considerable security concerns among Internet users and
fairly high levels of virus and hacking problems despite high levels
of anti-virus software installation. However, Chinese Internet users
clearly see the advantages of the Internet and the increasing number
and kinds of opportunities that it offers as outweighing the potential
inconvenience of viruses and other security issues.
Back
to top>>
Index
of Tables and figures
Appendices:
Back
to top>>
CMI
|
|