You Have 800 Million Messages

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You Have 800 Million Messages (All in Chinese)

AUGUST 21, 2006

More Chinese are in more of a hurry to communicate than ever.

According to the "China IM Market Quarterly Tracker Q2 2006" report, just
released by Analysys International, the number of registered instant messenger
(IM) accounts in China reached 828.6 million at the end of the second quarter of
2006, representing an 11% quarter-over-quarter increase.



In addition, active accounts reached 295 million, increasing 13.78% quarter over
quarter.

Analysys researchers believe that much of the increase is due to the fact that
major Chinese IM vendors strengthened market promotions in the second quarter,
stating, "Tencent carried out various market activities frequently and kept its
leading position in IM market. Sina's UC has gradually become an independent
product. Thanks for Sina's good relations with traditional media and frequent
market promotion activities, UC accounts increased greatly."

The firm foresees little change in the competitive environment in the upcoming
future because the market simply cannot accommodate too many service providers.
New entrants or smaller service providers will have a difficult time surviving
because the major IM vendors have established IM-based personal portal
strategies.

This point of view is backed up by research released earlier this year from
Shanghai iResearch, which showed that Tencent already accounted for a large
share of the market.



For more on the Chinese market, read the eMarketer report China Online.

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