Tencent's online video business to be profitable
0 Comment(s)
Print
E-mail China Daily, October 24, 2012
Tencent Holdings Ltd, China's biggest Internet company by sales, expects its online video business to begin making profits in a year or two, a company official said on Tuesday.
 |
|
Tencent Holdings Ltd’s online video booth at the 4th ChinaInternational Copyright Expo in Beijing in June. [Photo/China Daily] |
Alex Liu, general manager of Tencent's online video department, said the costs of online video business have declined and its 2012 revenues are expected to increase by 450 percent year-on-year, up from the 300 percent rise seen from 2010 to 2011.
Tencent's chief competitors in the online video market, Youku Tudou Inc and Iqiyi.com Inc, have also said they have seen a significant decrease in the price of the content they offer and predicted that will help them reach profitability in the next year or two. "We are also trying other ways to generate revenue - from paid users, for instance," Liu said.
Tencent's advertising revenues reached 879.7 million yuan ($140.7 million) in the second quarter, up 71.7 percent from the same period last year, according to the company's financial report. It did not disclose the number of advertising sales it made from online videos.
Most online video companies in China remain in the red, largely because they pay more than they earn for copyrights, bandwidth and their daily operation.
Go to Forum >>0 Comment(s)