Meanwhile, Xunlei, which has Google funding, postponed its expected IPO Thursday, citing stock market conditions.

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The free Xunlei Downloader which accelerates media downloads, was used for about 138 million downloads per day in 2010.

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Xunlei (planned ticker, Nasdaq: XNET) provides digital media content downloading and online video streaming as well as cloud-based subscription services.

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The Xunlei Kankan video streaming website is the third largest such site in China, with 120.7 million monthly uniques in April 2011.

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The site was run by Chinese web firm Xunlei, which had previously planned to float on one of the US stock exchanges.

BBC: Screen grab of Gougou message on site

New competition is coming in from sites backed by Web giants like Baidu, Sohu and Tencent, along with independents such as LeTV and peer-to-peer download sites like Xunlei and PPLive.

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