But premium content has also become somewhat commoditized across online video sites in China.
FORBES: Tudou CEO Gary Wang On Online Video, Mobile and Producing Original Content
The combined company will have the two leading online video brands in China: Youku and Tudou.
First in user-generated content, Tudou has grown organically, since it was the first online video site in China, launching in January 2005.
FORBES: Tudou CEO Gary Wang On Online Video, Mobile and Producing Original Content
But the economics of selling enough ads to offset the cost of video streaming in China are daunting, and not only for Baidu.
Earlier this week, the Romney campaign released a video claiming that China is stealing American ideas and jobs, and accusing Mr Obama of doing little to stop it.
As consumption of mobile data and video escalates in China, our small lightRadio Metro Radios will satisfy demand with the highest performance that China Mobile's customers' have come to expect.
ENGADGET: Alcatel-Lucent's latest lightRadio development aims to spread TD-LTE across China
In August 2012, iQiyi was ranked as the number one online video platform in China in terms of average time spent per user and number two in terms of total monthly time spent, according to iResearch, a China-based research firm.
ENGADGET: Baidu buys control of streaming video portal iQiyi, raises stakes in China's media wars
Competitors include China-based video sites Youku.com and 56.com, as well as other China Internet companies such as Baidu, Tencent, Sina and Shanda, which all have video sites.
China's video sites can offer more content in part because much of what they air is approved by China's Ministry of Culture, which also oversees DVD releases, and not by broadcast-TV regulators.
On a May 22 video I said that China most likely is already in a recession.
Unlike in the U.S., in China online video monetizes roughly the same on user-generated videos and premium licensed videos, Wang says.
FORBES: Tudou CEO Gary Wang On Online Video, Mobile and Producing Original Content
Tudou had 90.1 million users as of June, or 16.2% of the massive China online video market, second to Youku with 21.5%, according to Analysis International.
FORBES: Tudou CEO Gary Wang On Online Video, Mobile and Producing Original Content
This, despite the fact that mergers are not as accepted there as in the U.S. For example, in March, GGV-backed Tudou (which went public in 2011) and Youku merged, creating the largest video sharing website in China.
FORBES: GGV Capital, With $625 Million In New Funds, Targets China, U.S. Growth
As competition intensifies, China's video websites have begun producing their own material to differentiate themselves.
' new release and catalog films this summer through the first national Pay-Per-View and Video On Demand platform in China.
China's video sites were burning through their investment money without finding a business model, tapering off their CDN spending and shutting down.
Kotick contends Activision is the most successful Western video game software company in China already, via Worlds of Warcraft and Starcraft, both in partnership with NetEase.
The White House has ensured that there will be plenty of images to send back to China, where video clips likely will be broadcast on a continuous loop.
Around the time of that second capital injection, ChinaCache found another mushrooming source of revenue: China's Web video boom.
While Apple, Samsung and Google are free to ship their devices nearly anywhere, Sony (NYSE: SNE), Microsoft (NASDAQ: MSFT) and Nintendo have been prevented from selling their most successful hardware items video game consoles in China.
FORBES: Sony, Microsoft Could Make Billions if Chinese Ban is Lifted
Also, China's market for video on demand which allows consumers to order individual programs through their TV sets is just now gaining viewers.
Updated: Attempting to break the frozen China IPO market in the U.S., China-based voice and video chat company YY Inc. priced its initial public offering at the low end of its expected range, but traded up 10% in early trading Wednesday.
FORBES: China's YY Prices IPO At Low End Of Range, But Trades Up 10%
In March the 120-person startup revealed that it had signed an agreement with 56.com, one of China's most popular streaming video sites and, until a few months ago, one of the world's top sources of copyrighted streaming content.
According to a report in a respected business magazine, Caixin Century, Da Vinci has released video and audio recordings to support its claim that China Central Television had distorted earlier reports that its furniture had not been imported from Italy and had actually been made in southern China, instead.
FORBES: In China, Reports Of Fake Furniture May Also Be Fake
With the growth of mobile market in China, Tudou is increasingly focusing on mobile video.
FORBES: Tudou CEO Gary Wang On Online Video, Mobile and Producing Original Content
The Xunlei Kankan video streaming website is the third largest such site in China, with 120.7 million monthly uniques in April 2011.
FORBES: IPO Watch: Zillow, Skullcandy And Google-backed Xunlei
Apart from the fact that China is one of the largest markets for video games, OC3 Entertainment is developing affordable and easy to use versions of its product that will enable web designers, gamers, and casual computer and mobile phone users to bring life to their avatars.
An online-only version of the massively popular video game Call of Duty is to be made available to play in China.
Moore, has discovered that 58, 000 of the hackable video boxes, all of which use firmware provided by the Guangdong, China-based firm Ray Sharp, are accessible via the Internet.
FORBES: More Than A Dozen Brands Of Security Camera Systems Vulnerable To Hacker Hijacking
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