
China has half a billion internet users, and about 350 million of them watch videos online. China’s version of YouTube is Youku Tudou, formed when China’s No. 1 online video site acquired its top competitor in a deal finalized this August. With a combined 310 million unique users each week, they remain separate sites, with Youku serving a mainstream audience and Tudou focusing on entertainment-related content.
Youku and Tudou were originally a blend of YouTube, Hulu and Netflix, offering expansive libraries of licensed content as well as user-generated videos. But the migration of Chinese viewers to online video has created unique opportunities around original content, often featuring established stars.
“Part of the original content strategy is to make sure the content is squarely targeted toward the young, urban 18-to-35-year-old demographic,” said Victor Koo, Youku Tudou’s CEO, in a recent conference call with reporters.
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