comprehensive Xinhua news agency, Shanghai, August 21 – China’s largest video site Youku, potatoes merger program was adopted by the general meeting of shareholders on both sides of the high ticket, Youku potatoes group was formally established 20. After the announcement, the U.S. local time August 20th, Youku and Tudou shares fell 2.38% and 1.84% respectively. The same day, U.S. stocks closed flat.
merger is by far the largest domestic online video industry integration. Youku, potatoes currently occupy the domestic market share of the first video network, second, said the video user coverage after the merger of nearly 80%.
Analysys International analyst Zhang Fan believes that the rapid rise by cost pressures, Youku and potatoes through mergers will greatly reduce the pressure of the cost of copyright. Currently Youku and potatoes homogenization of content, but also led to a large number of waste of resources, through the form of resource integration can reduce costs.
high cost of video copyright and bandwidth cost is currently the number of video sites bear the two mountains, but also the current hinder the profitability of video sites can not bear the weight". Youku, potatoes recently released second quarter 2012 earnings report, Youku’s net loss of $62 million 800 thousand in the second quarter, Tudou net loss of $154 million 700 thousand. Among them, Youku second quarter content cost of $144 million, the bandwidth cost of $111 million 900 thousand, potatoes network content cost of 100 million 500 thousand yuan, the bandwidth cost of $65 million 100 thousand.
is the major video sites to spend film copyright hoarding effect in recent years, the domestic video copyright prices have soared, especially some video sites with high price to buy exclusive rights, promote the copyright of non rational price soared, many popular network TV drama at the high price of more than ten million yuan. To this end, the video site responsible person complain incessantly. Since the beginning of 2012, the video site began to bid farewell crazy grab drama behavior, copyright prices have gradually declined. Shanghai TV Festival this year, the number of copyright transactions and prices have declined last year, the highest of more than 1 million yuan / set of video network copyright in this year’s sharp diving, fell by half or even 2/3.
in the industry, with the completion of the merger of Youku, potatoes, domestic network video industry will usher in a new development pattern of the market, but at the same time will further compress the small video website, the formation of a new round of reshuffle.
LETV chief operating officer Liu Hong recently in an interview with reporters that the merger and consolidation of the network video industry is the industry trend. Youku, potatoes after the merger, the domestic mainstream video sites will form a 1234 competitive landscape. Among them, Youku, potatoes will be merged into a comprehensive video website, LETV, Iqiyi for two professional genuine long video website, PPTV, PPS, thunder three client sites, Sina, Sohu, Tencent, NetEase for the four launch of the video business portal. In addition to the Youku, potatoes merger, the last year, the country