CASBAA: Asian content still key driver, says Tudou founder Gary Wang

In a session presented by Campaign Asia-Pacific, Wang outlined the market in China, saying that video is one of the top applications, reaching 65.8 per cent of online users, behind music, IM and search. He said the online video industry is witnessing a CAGR of 36.6 per cent between 2006 and 2012. While Tudou is facing increasing competition, Wang said he welcomes more content partnerships – as well as the possibility of extending Tudou’s reach beyond China.

Asian content, from Greater China and Korea, are dominant drivers on the site, with demand for US content still minimal. Wang also alluded to the fact that international content is comparatively expensive to license.

Asked whether the streaming of unlicensed foreign content limits potential content partnerships, Wang described it as “a China myth, a misconception” that most content is pirated. “Two million videos on Tudou are UGC, and we have a pretty comprehensive system to remove content if necessary. Two to three million videos are removed per year.”

While Wang doubts that a paid subscription model would work in China, because most content is available elsewhere for free, he was very upbeat about the advertising support Tudou receives. Mentioning a number of major marketers, such as Nokia, Coca Cola, P&G and Unilever, Wang said attitudes to online advertising are rapidly evolving.

“Two years ago, advertisers would ask ‘Who are you?’; last year they asked to be educated about advertising in online video. Now they are asking, what will happen if we don’t advertise online?”

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