Why Xiamoi Buying Stake in iQiyi and Youku ?

Android device maker Xiaomi is considering taking a stake both in Baidu’s online video subsidiary iQiyi and in Alibaba-invested online video site operator Youku Tudou. Earlier this month on its official Weibo account, Xiaomi announced that it plans to invest US$1bn in online video content to support its smart television ecosystem. We expect Xiaomi to invest about US$300m in iQiyi to become the second largest shareholder and an US$ 8-digit figure in Youku Tudou in the secondary market.

A partnership with iQiyi and Youku Tudou will (more…)

Chinese Video Sites Collaborate with Koreans Promote Dramas

China Online Video Partners KoreaSohu yesterday announced that it has established a strategic partnership with Korean entertainment company KeyEast, and will invest approximately USD15m to take a 6.4% stake in the company. Through the partnership, Sohu will become KeyEast’s sole online partner in China and the two companies intend to introduce more Korean celebrities and entertainment programs to the Chinese audience. KeyEast was founded by famous Korean actor Bae Yongjoon, who also enjoys great popularity in China. The company signed up actor actor Kim Soo-hyun has attracted a considerable Chinese following through the hit TV drama – “My Love from the star“. The total video views of the drama on iQiyi (the first online video platform to broadcast the drama in China) had reached approximately 2.6bn as of 8 August, with (more…)

Top 10 Video Online Sites in China

While China’s online video market has consolidated further at the expense of smaller competitors, competition for Youku remains intense with key rivals, such as Tencent, iQiyi, and Sohu, which enjoy financial strength and synergies with their core business.

Youku and Tudou combined for ~31% of online video sales market share in China, followed by Sohu and iQiyi with ~10% each. However, Youku and Tudou’s market share dropped from mid-30% at the end of 2011, due partly to the sales force restructuring after the merger was announced in 3Q12. Meanwhile, Tencent and iQiyi have been gaining market share over the past 12 months.

The following Chart Shows the Top 10 Online Video Platforms in China
China Online Video MarketShare