crowdsourcing | storytelling | citizenship
People’s Insights: Volume 1, Issue 12
YouKu-Tudou merger
Youku and Tudou Youku and Tudou are two of the largest online video streaming companies in China. They enable users to search, view and share video content that is licensed, user-generated and created in-house.
Source: http://www.youku.com/, http://www.tudou.com/
Fierce rivalry A year ago, they traded charges of copyright infringement. Youku sued Tudou for $762,000, claiming losses due to Tudou’s 'misuse' of copyrighted videos. They have also been fighting for market share.
Source: http://www.newsorganizer.com/article/youku-says-it-filed-copyright..., http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20111219000002&cid=1102
Youku buys Tudou Youku is buying Tudou in an all-stock deal worth more than $1 billion, creating China's largest video sharing website. Youku shareholders will own 71.5% of Youku Tudou Inc. Tudou shareholders will get the rest.
Source: http://www.techwireasia.com/2311/much-ado-about-video-youku-buys-tudou/ , http://www.facebook.com
Competitive market China's online video market is very competitive. There were rumours that Tudou would be bought by one of the 10 players. Acquiring a company of its size, would be a major setback for other firms, hence Youku ensured it beat other firms to the acquisition.
Source: http://www.filmbiz.asia/news/chinas-online-video-gets-competitive , http://www.researchinchina.com/Htmls/Report/2011/6185.html
Consolidation to combat issues Increasing cost of bandwidth and content, a well as the nascent ad market, have hurt the business. Last year, Tudou and Youku reported net losses of $81.2 million and $27.2 million respectively.
Source: techcrunch.com , ft.com/intl/cms/s/0/27d4df96-6c2f-11e1-8c9d00144feab49a.html#axzz1ppMy95D3
Creation of a monopoly Youku Tudou Inc will be the leading online and mobile video platform in China. It will benefit from a combined user base, a huge content library and sturdy bandwidth infrastructure. The merger will help cut costs too.
Source: http://paidcontent.org/ , http://www.wantchinatimes.com/news-subclasscnt.aspx?cid=1102&MainCatID=11&id=20120316000060
Coming of age Analysts said that the union is good for the highly competitive industry that caters to China's 500 million internet users. Social media has also taken off recently, with over 235 million users in 2011.
Source: http://www.resonancechina.com/2011/07/28/total-chinese-internet-users-to-reach551mm-by-2012/ , http://mashable.com/2011/11/30/china-social-networking/
Impact on consumers Consumers are not bothered about the merger other than the changes it will mean for the user experience. Some think the near-monopoly will mean more ads, longer loading time and poorer content.
Source: http://www.sinocast.com/readbeatarticle.do?id=72810
Impact on TV stations, advertisers TV stations and producers could initially sell content to both websites, but not any more. Their revenue will reduce. Even though advertisers won't spend on both, they will have to spend more on the new platform.
Source: http://www.pcworld.com/ , http://en.campaignchina.com
The future Profits will be hard to come by. Youku Tudou Inc will have to find a way to minimise losses. It will command 35-40% of China's online video market. Small players will become attractive acquisition targets for large players to compete.
Source: http://english.caixin.com/, http://peopleslab.mslgroup.com , http://twitter.com
More People’s Insights Weekly reports Every week, we dive into one topic for discussion on the MSLGROUP Insight’s Network and discuss insights and foresights, in three key areas: crowdsourcing, storytelling and citizenship.
Crowdsourcing
Storytelling:
Citizenship
Mahindra Spark the Rise
@MarsCuriosity
#Kony2012
For more reports, visit: peopleslab.mslgroup.com/peoplesinsights/
Read People’s Lab insights and foresights The People’s Lab team shares the insights and foresights from the MSLGROUP Insights Network on the People’s Insights weekly blog and the People’s Insights Quarterly magazine.
MSLGROUP Insights Network
People’s Insights weekly blog
People’s Insights Quarterly magazine
50+ MSLGROUP planners share and discuss inspiring projects on corporate citizenship, crowdsourcing and storytelling.
We deep dive into conversations around one project -- on the MSLGROUP Insights Network itself but also on the broader social web -- to distill insights and foresights.
Every quarter, we will compile the best insights from the network and the blog in the iPad-friendly magazine, as a showcase of our capabilities.
For more, visit http://peopleslab.mslgroup.com
Coming soon: People’s Insights Annual Report In early January 2013 we will publish the People’s Insights Annual Report, in which we synthesize our insights from throughout 2012 and provide foresights for business leaders and change-makers for 2013.
People’s Lab: Crowdsourcing Insights & Innovation People’s Lab is MSLGROUP’s proprietary crowdsourcing platform and approach that helps organizations tap into people’s insight for innovation, storytelling and change.
For more, visit http://peopleslab.mslgroup.com
For People’s Lab solutions, contact pascal.beucler@mslgroup.com