Chinese search engine Baidu announced plans to create a new independent online video company to provide licensed video content to Chinese internet users, Reuters reported, citing a source familiar with the matter. The source said that Baidu was cooperating with Providence Equity Partners, one of the investors in the US online video site Hulu, to establish a website in China that would use ad-driven revenue to provide copyrighted movies, TV series and animation. Dick Wei, a J.P. Morgan analyst, stated that the majority of video sites in China lacked profitability, but Baidu’s ability to provide targeted search advertisements offered an advantage. Baidu has already made forays into the US$23.73 million Chinese online video market with its investment in PPLive, which provides licensed content for free.
Categories