Caixin has a pessimistic assessment of China’s Internet industry, which it says is in a “state of chaos”:
In the coming three to five years, three trends will determine the direction of innovation on the Internet.
The first is the competition among new media platforms. At the moment, the composite direction of Facebook’s software platform, Apple’s hardware platform, and Amazon’s hardware/software platform represent a possible route of development. New media platforms with large market shares have teamed up with content providers to become a major force.
The second is competition for video service. In other words, how will online video services affect traditional television? And how can traditional television fight back? As of now, television is the only traditional media outlet left that has maintained robust growth in the battle with online media.
The third trend is the competition for transformation among traditional media. In other words, can traditional media stubbornly resist to the last, or die out completely? Or will they transform themselves into an organic component of the new media environment?
At the end of the day, no matter how much attention these three trends for innovation stir up, in the coming three to five years the only innovation that will matter will be centered on one focus: giving users stronger, simpler, more convenient and cheaper software and hardware platforms — in other words, an online service that the users like. To this end, the Chinese Internet will continue to be a follower. In the best case scenario, we won’t be left too far behind.