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Struggling video websites set to charge fees on viewers
By Zhu Shenshen |
June 19, 2012, Tuesday
|
Online Edition
Online Edition
Online video websites will charge users for watching films on the Internet. The practice will bring additional revenue for both film makers and video websites. But the industry has to cope with rampant piracy and solve the payment problem to increase earnings, panelists told a forum at the ongoing 15th Shanghai International Film Festival today.
"I have to say, though many probably won't agree with me, that online films should not be free if we want a healthy and sustainable business model," Gong Yu, iQuyi's chief executive, told the forum themed "Looking for New Model: Marriage of Cinema and New Media."
iQiyi, an online video subsidiary of Baidu.com Inc, will launch a paid film streaming service this year. It will also broadcast programs on dating, car, travel and gourmet at a lower cost but a wide-range target audience, such as Date my Car.
The copyright cost of films streamed online is 10 times that of TV series broadcast online but their advertising income is about the same. That forces video websites to charge viewers, said Gong, whose view was echoed by Youku, China's biggest video website, and Sohu.com.
Youku now provides paid film service, charging users 5 yuan (79 US cents) for watching films within 48 hours.
China Telecom's E-surfing Video Media Co also signed with Huayi Bros to kick off paid film and video service for China Telecom's 120 million handset users and 68 million broadband users.
"I have to say, though many probably won't agree with me, that online films should not be free if we want a healthy and sustainable business model," Gong Yu, iQuyi's chief executive, told the forum themed "Looking for New Model: Marriage of Cinema and New Media."
iQiyi, an online video subsidiary of Baidu.com Inc, will launch a paid film streaming service this year. It will also broadcast programs on dating, car, travel and gourmet at a lower cost but a wide-range target audience, such as Date my Car.
The copyright cost of films streamed online is 10 times that of TV series broadcast online but their advertising income is about the same. That forces video websites to charge viewers, said Gong, whose view was echoed by Youku, China's biggest video website, and Sohu.com.
Youku now provides paid film service, charging users 5 yuan (79 US cents) for watching films within 48 hours.
China Telecom's E-surfing Video Media Co also signed with Huayi Bros to kick off paid film and video service for China Telecom's 120 million handset users and 68 million broadband users.
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