According to local media reports, rival Chinese video websites Youku.com and Tudou.com have formed an alliance and jointly launched a new online video joint broadcast model, sharing the copyright of each other's exclusive videos.
The two parties said they hope to expand the cooperative range of this new model. Apart from the sharing of exclusive videos, they are looking forward to cooperating in areas surrounding copyright production. And as the beginning of their joint broadcast model, Youku.com and Tudou.com have exchanged two exclusive TV series, and they have the rights to resell and broadcast these videos.
Gu Yongqiang, CEO of Youku.com, claimed to local media that the combined market share of Youku.com and Tudou.com in China's online video sector is nearly apparently 80%. Based on the large user base, the joint broadcast model will help videos create reputation effect on the Internet.
Wang Wei, CEO of Tudou.com, said that the cooperation does not need any profit allocation. It is a measure that can accelerate the development of both companies and can promote the development of the entire video market in China. Wang said they will consider any model that can promote the video industry and will not reject new participants.
In fact, these two rival companies are probably cooperating because they fear the future is uncertain, since they are also competing with government-owned online video operations such as CCTV.com. To add even further pressure to Youku.com and Tudou.com, late last year Chinese telecom operator China Telecom set up a video center in Shanghai to develop its online and mobile video businesses. The new video center will operate China Telecom's IPTV, mobile phone video, and Internet video services; and it will be responsible for the operation of China Telecom's nationwide video central platforms to support the development of the video business in various provinces. At the same time, the center will be committed to the construction of a social media video industry chain and establish Shanghai's video industry with the joint effort of the local government.
Chinese search engine firm Baidu.com is also this year launching a new company to provide advertising-supported online video services in China.