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Analysys International Says China's Internet Services Market Reached 18 Billion in 2005

Posted on: Wednesday, 22 February 2006, 09:00 CST

BEIJING, Feb. 22 /Xinhua-PRNewswire/ -- Analysys International, a leading Internet based provider of business information about technology, media and the telecom industry in China, says that China's total market size of Internet services (mobile value-added services excluded) reached RMB18 billion in 2005, representing an increase of 41% from 12.8 billion in 2004, in its recently released report China Internet Market Report 2005-2006.

According to the report, Analysys International classifies Internet services into three business models: contents, marketing services and intermediate services. Contents and marketing services are the major income source of China's Internet services market. Revenues from contents and marketing services totaled to RMB17.1 billion in 2005, accounting for 95% of the entire Internet services market. Intermediate services only exist in several industries, with a market size of RMB900 million, accounting for 5% of the market total.

Contents services, represented by Internet games, instant messaging services, B2C and online education, reached RMB10.5 billion in 2005, accounting for 58% of the market total. Typical service providers include Shanda, Netease, The9, New Oriental, China Education Online (EOL) and Tencent.

Marketing services, represented by web portals, search engines, Blog services and B2B, reached RMB6.6 billion, accounting for 37% of the market total. Online advertising, including advertising revenues from search engines, occupied 67% of the total marketing services market and 24% of the entire Internet services market, making it the most profitable Internet business. Typical service providers in this category include Sohu, Sina, Baidu, Google and Alibaba.

The typical intermediate Internet service in China is online travel service. Analysys International says China's online travel market reached RMB810 million in 2005, increasing 53% YoY, and the market will continue rapid growth.

This subject is further discussed in Analysys International's research report China Internet Market Report 2005-2006. For more information, please check the website: http://english.analysys.com.cn/ .

About Analysys International

Analysys International is the leading Internet based provider of business information about technology, media and the telecom industry in China with the mission to help their clients make better business decisions. They provide data, information and advice to 50,000 clients worldwide, representing 1,500 distinct organizations; they also deliver over 150 consulting engagements a year, and hold more than 20 events that draw in over 8,000 attendees. Their clients include executives from companies like technology vendors, vertical information technology users, as well as professionals from professional service companies, the investment community and government agencies. For more information, please visit the web site at http://english.analysys.com.cn/ .

For more information, please contact: Jessica Wang Overseas Media Manager Analysys International Tel: +86-10-6466-6565 x394 Fax: +86-10-6466-7102/7103 Email: Overseas@analysys.com.cn

Analysys International

CONTACT: Jessica Wang, Overseas Media Manager of Analysys International,+86-10-6466-6565 x394, or fax, +86-10-6466-7102/7103, orOverseas@analysys.com.cn

Web Site: http://english.analysys.com.cn/

Source: PRNewswire

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