With the rapid growth of Internet users in China bringing online video into a new paradigm, the market scale we first envisioned as an online video website back in 2006 has grown significantly.
Sentiment: POSITIVE
On top of opportunities in further traffic growth, there are increasing opportunities to fully realize the potential of the online video ecosystem, as China continues to evolve into a consumer-driven economy.
The advertising market in China is big and is still growing at a considerable pace. While online video is emerging as a mainstream advertising solution, it still represents a relatively small portion of advertising budget in China.
The online video business started in both China and the US around 2005/6, when broadband penetration grew big enough.
It's very hard to just have a pure form like a Hulu or a YouTube to be successful in China because our view is, users come to a platform; they really don't care whether it is professional or whether it's a user-generated, or it's premium, you see. They want to come to a big database to be able to find the content they want.
It is obvious that the Internet has become such a video-driven entity. With broadband becoming ubiquitous, viewers and advertisers are looking for professional-quality videos.
It's not enough to have a value-adding product in a big market. You also need the right conditions. Will you be able to scale revenues within a 5-10 year time frame? Is the timing right? YouTube wouldn't have worked pre-broadband.
You could argue that as web audiences have grown larger and advertisers have demanded scale, the web has dumbed down - like the mainstream media we so mocked.
The internet has become one of the motors of the 21st century economy, allowing all of us to reach a global audience at a click of a mouse and creating hundreds of thousands of businesses and millions of jobs.
The world of digital media is being transformed. A bunch of new businesses can be reinvented, thanks to social graphs, the mobile internet, and the new shopping habits of the young. Those are going to create a whole generation of cool new companies.
People are building communities of people who use video. They're sharing them. YouTube's traffic continues to grow very quickly.
No opposing quotes found.