Baidu to form video portal to meet user demand
By Ding Yining |
January 8, 2010, Friday
|
Print Edition
Print Edition
BAIDU Inc announced yesterday it will establish a new independent online video company to tap the growing number of domestic Internet users.
The leading Chinese Internet search provider said the new company will provide copyrighted video content through an advertising supported model, according to a statement on its Website.
"We have seen increasing demand for high-quality video content and we hope to serve our users with superior content and focused resources after establishing the new company," said Ren Xuyang, Baidu's vice president for marketing and business development, without elaborating further.
But an analyst said it will take time for the new Website to develop and contribute to Baidu's revenue.
"Baidu's new company will not contribute a large proportion to its advertising revenue as its business model still needs time to fully develop," said Tang Yizhi, an analyst with Analysys International. "Internet portals will not see a very large market share in the online video sector this year as it takes time" to build up.
The leading Chinese Internet search provider said the new company will provide copyrighted video content through an advertising supported model, according to a statement on its Website.
"We have seen increasing demand for high-quality video content and we hope to serve our users with superior content and focused resources after establishing the new company," said Ren Xuyang, Baidu's vice president for marketing and business development, without elaborating further.
But an analyst said it will take time for the new Website to develop and contribute to Baidu's revenue.
"Baidu's new company will not contribute a large proportion to its advertising revenue as its business model still needs time to fully develop," said Tang Yizhi, an analyst with Analysys International. "Internet portals will not see a very large market share in the online video sector this year as it takes time" to build up.
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