China Internet Society (DCCI) Gives High Marks to Youku in 1H 08 Internet Video Report

China Internet Society (DCCI) Gives High Marks to Youku in 1H 08 Internet
Video Report
Youku Sets Industry Record for Viewing Time of Web Video, Attains 50% Market
Share

BEIJING, July 23 /Xinhua-PRNewswire/ -- Youku, China's leading Internet
video sharing site recently swept in all categories of measurement for the
first half of 2008 in a report just issued by The China Internet Society Data
Center of the Chinese Internet (DCCI) on Internet video sites. The report
banishes any doubt that Youku ranks as China's leading video site.
Network monitoring data from DCCI showed that Youku ranked first in
overall reach, video views, unique visitors, and frequency of visits,
substantially widening its lead in the first half of the year. More
significantly, total time spent by visitors to the site approached a monthly
average of 100 million hours across the six-month period, with total video
views in June exceeding 116 million hours and 4.6 billion views.
Over Half the Market: Youku has, for the first time, captured more than
50% of the total market share in time spent, setting it clearly above the
number two competitor by about 80% in a contest that was, until this year,
still considered by industry analysts to be a close-run race. Recent surveys
conducted by other third parties, including Shenzhen-based Tencent, show Youku
comfortably ahead of its nearest competitor in terms of brand recognition,
streaming speed, overall user experience, variety and freshness of content.
Time is the Measure: Youku has long held that measures to rank Internet
sites commonly used in the past do not provide an accurate reflection of video
websites, and that viewing time needs to be factored in as a measure of
product stickiness, content quality and user experience. By emphasizing this
measure, the China Internet Society DCCI study recognizes the importance of
this measure for video Websites. Youku founder and CEO Victor Koo stated that
video views (VV) and unique visitors (UV), while still useful indicators of a
site's traffic, do not accurately reflect a site's overall strength. Time
spent by its user base is the result of long-term accumulation: It captures
core stickiness, whereas these other indicators reflect a site's
comprehensiveness and user awareness.
Ad Attraction: With current domestic Internet users in the range of 221
million people, Youku's nearly 100 million users means that nearly one in two
Chinese Internet users are Youku users. Brand advertisers are assured of
reaching a significant cross section, and can choose the most effective media
in their planning.
The video industry has changed substantially from its beginnings in China,
with mainstream, professionally produced long form content assuming an
important role alongside the traditional, user-generated short form content
familiar to users of YouTube. Youku has recognized that professionally
produced longer form content has grown increasingly valuable in attracting
brand advertisers and increasing the overall value of video inventory. In
June,
Youku officially launched a cross-media cooperative alliance strategy aimed at
leveraging synergies between traditional television advertisers and this
increasingly critical online medium.
Third Party Confirmation: The DCCI report aside, numerous third-party
monitoring has reinforced the report's findings in recent weeks. iResearch's
iUserTracker's latest June 2008 confirms DCCI's findings that Youku now holds
a market share over 50%. The Baidu Index and Google Trends also illustrate
that Youku's lead in the industry continues to grow.
While growing its dominant position in the industry, Youku has continued
its policy of pursuing a high-end user base, attractive brand advertisers, and
content in strict adherence to regulators. Fresh from a cash infusion of $40
million in venture capital funding and venture debt, the company is also
riding high on its recent receipt of audio-video production and operation
licenses from the State Administration of Radio, Film, and Television (SARFT).
"It has always been our goal to create a safe environment for brand
advertisers to reach a wide base of Chinese Internet users that come to our
website everyday to watch videos," said Victor Koo.
About Youku.com
Youku.com ( http://www.youku.com ) is the leading video sharing website
and premier online video brand in China. It is one of the top destinations for
Chinese people to watch and share videos all over the world. In addition to
user-generated content, Youku.com also works with more than 150 professional
media partners to distribute online videos in China. Youku.com was officially
launched in December 2006 and has grown rapidly since. Youku.com delivers more
than 150 million daily video views as of June 2008 and total user time spent
exceeded 30 billion minutes per month.
For more information, please contact:

Karen Chen
Tel: +86-10-5885-1881 x8206
Email: chenying@youku.com

Alex Stanton
Stanton Crenshaw Communications
Tel: +1-212-780-0701
Email: alex@stantoncrenshaw.com

SOURCE Youku.com

Karen Chen, +86-10-5885-1881 x8206, or chenying@youku.com; or Alex Stanton,
Stanton Crenshaw Communications, +1-212-780-0701, or alex@stantoncrenshaw.com