Youku sees future in providing TV programs

Youku.com, a Chinese YouTube-style Website, plans to generate 100 million yuan (US$14.7 million) of revenue by providing about 40,000 television programs online with built-in advertisements, the company said Monday in Shanghai.

Chief Executive Victor Koo said the deal with more than 1,000 content providers had enabled 80 percent of Chinese TV programs to be viewed online.

Youku, the country's No. 1 online video Website, expected the financial crisis to have "limited" impact as many advertisers spent more on the Internet than they did on expensive TV commercials, said Koo.

Youku has obtained online copyrights for the TV programs and shares advertising with content providers.

Unlike in the United States, most viewers in China watch videos online, according to Koo, who was formerly Sohu.com's president and chief operating officer.

"It's too early to say whether the crisis is an opportunity (for us) but I'm sure firms want the most efficient way to promote their services, including the Internet," said Koo.

But Koo declined to comment on when the firm would turn profitable.

There were 160 million Chinese users of online video sites by the middle of this year, 75 percent of the total number of Netizens, according to the China Internet Network Information Center.

Youku has more than 120 advertisers, from finance, auto, and consumer products to IT products, many of which have increased spending on Youku.

Youku announced in June it had won venture capital investment valued at US$40 million. The investors included Maverick Capital and Brookside Capital.

Youku attracts more than 100 million unique visitors each month and each user spends about 300 minutes every month on the site, the company said.