[photopress:Chinesevideo_1.jpg,full,alignright]The two biggest rivals on the Internet in China — Google and Baidu.com — are looking at expanding online video services. As we are talking of the world’s fourth-largest economy this is a high-stakes game.
There are three ways to go. Start from scratch. Buy a potential company or go into co-operation with existing sites.
All this has happened since Google bought YouTube for US$1.65 billion and now seeks to extend its reach. Baidu, keeping in step, launched its own Chinese-language video Web channel on a trial basis a few months ago.
If there is a Chinese version of Google it is a no-brainer to work out that the management wants a Chinese version of YouTube. The same with Baidu.
Baidu issued a statement which was a magnificent summary of nothing of importance as such statements so often are:
‘As a leader in China’s rapidly growing Internet sector, we constantly evaluate opportunities to build value for our users and our shareholders. We will announce material business developments, if any, when appropriate.’
And from Google in China not a peep.
In October Viacom Inc.’s MTV Networks agreed to share music videos and shows in China with Baidu in an attempt to get at the advertising revenue inherent in the world’s second-largest Internet market.
Baidu has also approached a number of Chinese video-sharing sites including 56.com and Tudou.com for informal talks. Immediately statements came out denying any such possibility.
Vicky Wang, a vice president at Tudou.com, said, ‘We don’t have any plans to sell our company at present as we want it to grow stronger and faster on its own at this stage.’ And the company hopes to list in the future.
That may well be the reaction of many of the video-sharing sites. Which means Baidu and Google will effectively have to start from scratch. It will make an interesting battle.
Source: China Herald