|
Tuesday, 02 September 2008 11:14 |
|
In contrast to their US counterparts, P2P startup companies is China are doing very well indeed.
A company such as Xunlei (“Thunder” in English) started as a popular download accelerator, pulling in large files like video and e-magazines. It went on to leverage its Thunder application to build a content-based platform, which offers and promotes video, audio, magazines, applications and other content categories. As a result, they were able to secure a first round of funding of $30 and are currently courting U.S. venture capitalists to raise another round of $100 million. Xunlei is planning an IPO at the end of 2008. Other companies, such as PPLive and its competitor PPStream, don’t need VC capital, since they generate revenue from advertising aimed at millions of active users watching thousands of video streams on their websites. According to the Chinese market research company iResearch, the number of P2P website users is exploding across the board for Chinese P2P providers and there is no indication that it will slow down soon. This raises an interesting question: how come that so many Chinese P2P providers succeed in contrast to non-Chinese ones? If we look at Joost, we see that one of the problems is technology – Joost’s bandwidth requirements cause performance problems. It also seems that the Chinese are far more savvy P2P users than their foreign counerparts, demanding rich entertainment content from their providers. In an ironic turn of events, the struggling Joost decided to enter the most sophisticated P2P market in the world – China! Joost is partnering with the Chinese company Tom.com in this (ad)venture. How Joost is going to compete with the well-established and profitable local companies remains to be seen. What is the key success factor of Chinese P2P companies? In my opinion, first and foremost they know their market and listen to their customers. They address the huge demand of Chinese Internet users for anything entertainment-related. Their content-rich P2P sites deliver what their active users want, resulting in tremendous growth. By leveraging the growing online advertising market, their ad-supported content will keep on generating increasing revenue streams.
|
|
|
Thursday, 28 August 2008 08:14 |
|
Google and partners in China, Sina.com, are competing against China’s biggest search engine, Baidu, for MP3 searches. Goggle may have the advantage in the battle to capture the largest market share as it has been successfully negotiating with record companies to acquire the right to supply legal copies of music; meanwhile Baidu.com is currently plagued by legal battles with music companies over copyright infringements. Google is said to be looking at means of capturing the MP3 search market without any hitches.
Sina reported recently that Google will share advertising revenues from MP3 searches in a business model similar to that Google has with its other partners and in its other services. Google has already established partnerships with other leading companies in China including China Mobile, China Telecom and China Netcom. Chinese official online news, Xinhua.net, reported recently that Sina.com is negotiating a contract with top100cn, a service backed by Chinese NBA star Yao Ming, which provides music searches and download services. According to the report, top100cn is expected to agree to cooperate with Google and Sina.  
 
|
|
Tuesday, 19 August 2008 08:44 |
|
China's Focus Media, The Shanghai-based multi-platform digital media company which main business is out-of-home advertising reported $76.1 million of its $211.7 million total revenue came from internet ads, roughly one-third compared to one-quarter of in Q207. Revenues from internet advertising rose 201 percent over $26.4 million in Q207 and 53.6 percent over Q1's $51.4 million.
Focus Media took a big hit in mobile advertising earlier this year when it agreed to ban mobile ad spam, slashing expected 2008 mobile revenue by $40 million. 
|
|
|
Thursday, 14 August 2008 12:51 |
|
Sina.com, China's largest web portal, is reporting a dramatic increase in profits; it achieved a net income growth of 74 percent in the second quarter of this year, 2008.
The reason to the outstanding record gain and earnings is attribute to the increase in online advertising business in China.
Sina Corp. was founded in 1997, and since then became a leading player in the field of internet properties established in China.
The company supplies a diversity of services including search and directory, region-focused online portals, interest-based and community-building channels etc.
In addition, the company provides a free and high-standard email, online games, blog services and electronic commerce.
The company expects the ad business will continue to flourish next year, as a result of the terrific brand value and the exceptional sales staff. 
|
|
Sunday, 27 July 2008 14:08 |
|
Compared with figures from the same time last year, online spending in China has risen by 47.3% according to findings of a recent report compiled by the DCCI, The report states that internet users in China spent $37.5 billion in the first half of 2008. The growth in expenditure is attributed to the rise in the number of Chinese with access to the internet. The internet population, or netizens, has grown at an incredible speed. There are currently around 221 million internet users in China and figures are expected to reach 263 million by the end of the year; this will represent an increase of 25%.
Calculations for online spending that factor in exceptional spurts in growth - besides the projected growth in the number of Chinese online, have not been published. One such boost to online spending in the coming few months could be the live, online coverage of the Beijing Olympic Games. Online advertisers will be busy attracting custom throughout the Games and beyond, as there will be video on demand facilities for all events – attracting viewers back to the sites covering the games well beyond the end the August 2008. Estimates for online spending until the end of 2008 currently stand at 587 billion Yuan, but this may prove to be conservative. 
|
|
|
|
|
|
|
|