However, currently, revenues of the online schools are mainly derived from tuition fees. Huang said that 101School.net had gained some advertising revenues, but it accounted for less than 10 percent of the company s total income. Other online schools have little advertising revenue due to the small number of registered users, the article said. Market demand Analysts said that more than 95 percent of China s industries and products are oversupplied or have a balance between supply and demand, resulting in a low-level buyer's market. However, high-quality education still holds a sellers market because it is far from meeting the social demand, the article said.
Primary education is weak in China.
In some cities, access to an ordinary middle school is even more difficult than entering a college. The renowned middle schools and primary schools are in the most demand among those in pursuit of a higher education, the article said. That is the reason that companies prefer to team up with renowned schools when providing online education services. The Web sites provide capital and technology, while the schools provide high-quality education services, the article said. China uses an exam result-oriented educational system, where the fate of a student is dependent on a single exam, such as a high school entrance exam.