Kankan, the online video streaming service of download service provider Xunlei, offers a paid monthly subscription that include online video-related premium offerings and other services, HD videos, premium content, no ads, better video player, discounts on movie/concert tickets. The price is 15 yuan (less than $3). Xunlei, Kankan’s parent company, also makes money from users through paid subscriptions. Its CEO, Zou Shenglong, once said premium subscription had been the best to have users pay.
A recent report by Kankan shows that over 90% of its paying users are male. Single men make up the largest group and the married also account for a large part — those in relationships must have little time watching videos home or don’t care about the quality or content of videos.
70% of paying users are 15 – 29 year olds. More than half graduated from colleges or graduate programs. A majority of them are living in big or mid-sized cities. More than half spend an average of 30 yuan a month — besides the 15 yuan for Kankan, they also spend money on other Internet services.
Of all the premium offerings, Kankan found the new movies, especially those that are playing in the theaters, is the No. 1 reason that users would subscribe to the package. The second is for no ads; the third is HD videos; the fourth is the better player; the fifth is rewards credits that can be used for buying movie tickets and the like.
Other Chinese online video services including Youku-Tudou offer similar subscriptions. Youku also offers paid, on-demand videos. In general, revenues from end users are still minor to those online video services while the majority are from advertising.