China is the largest Internet market in the world and digital entertainment continues to grow exponentially, according to Spotlight on China, a report released by Ernst & Young on China's media and entertainment (M&E) industry.

"The largest M&E companies in the world certainly understand that their global strategy has to have China front and center because it has an extremely promising market with vast digital adoption," said David McGregor, Asia-Pacific media and entertainment leader for Ernst & Young.

Digital media is revolutionizing the way the Chinese use M&E. The rapid adoption of connected devices and wireless broadband access is driving fundamental shifts in how China's youth in particular use content.