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Will Europe follow Chinese trend of substituting TV for YouTube?

Ernst-Jan Written on 25th August 2008                                                                                                              3 COMMENTS some text
Ernst-Jan Pfauth, editor in chief

YouTube has become one of Holland’s top 3 most visited sites, a study by Dutch research agency Multiscope shows. Two thirds of Dutch Internet users check the video site on at least a monthly basis, partly due to the network effect of the service (You know the deal, bored people sending each other videos during work). Apart from these impressive numbers, one part in the study report particularly struck me: the extraordinarily high average visit time, which is 8 minutes. Is online video becoming a substitute for TV?

Chinese TV threatened by online videos

Will Europe follow Chinese trend of substituting TV for YouTube?In China, this already is the case. The country is the home of the world’s most exciting online video market. The government isn’t afraid to pull the censorship card every once in a while, there’s tough competition, as much rumors as videos, and millions, millions of funding and views. When I interviewed Marc van der Chijs, founder of Tudou – largest video site of the world with 35 billion minutes viewing time in January -, he told me the average visitors stays on Tudou for 47 minutes. “For young Chinese people”, he said, “it is a substitute for television”.

Will Europe follow?

So while the first signs of a similar trend are appearing in the Netherlands, the questions arises whether we Europeans will face a similar scenario in the near future. Comscore recently released data from their online video measurement service, indicating that 23.2 million French Internet users viewed 2.1 billion videos online in January 2008. That number of 23.2 million viewers makes up for 79.5 percent of the total French Internet audience. So almost 80 percent of French Internet users watched on average 90 videos in one month.

There’s of course one major difference though — European television tends not to suffer from censorship threats, thus it’s not as biased as in China. No frightened kids who run to the “unbiased” and fun environment of online videos. Though when I think about it, the quality of Dutch TV isn’t particularly high either. Will we abandon the couch en masse to watch four-minute clips?

[Via: Bright (Dutch)]

My favorite soap opera: the Chinese online video market

Ernst-Jan Written on 1st July 2008                                                                                                              7 COMMENTS some text
Ernst-Jan Pfauth, editor in chief

On days like today it seems no industry is more exciting than the Chinese online video market. It’s like a soap opera with all the right ingredients: a government that isn’t afraid to pull the censorship card every once in a while, tough competition, as much rumors as videos, and millions, millions of funding. So here’s your latest episode with, I must say, quite a cliff hanger.

The millions of funding

My favorite soap opera: the Chinese online video marketFirstly, there’s Youku. Nobody’s exactly sure, but they seem to be the no. 2 video site (100 million daily video views). They’ve already gathered $40 million of funding in three rounds and announced yesterday that this number has doubled. The video site received $30 million from existing investors Brookside Capital Partners, Sutter Hill Ventures, Farallon Capital and Chengwei Ventures and added another $10 million with a loan by Western Technology Investment (former loans: Facebook and Google).

But that’s not all, as one of the other video players in world’s largest internet market also managed to get a few millions here and there. The Pacific Epoch reports that the smaller video site Ku6.com has received $30 million in series C funding. An employee secretly told them, as Ku6 isn’t very transparent when it comes to funding. They allegedly closed series B at the end of last year and received $10 million of series A funding in May 2007.

The destination of this money is almost certain, as Tudou (no.1) founder Marc van der Chijs told me that almost all the investments flow directly to bandwidth. He said that he could turn Tudou into a profitable business by limiting the bandwidth usage, yet then his competition would probably catch-up.

The censorship

My favorite soap opera: the Chinese online video marketIn that very same conversation, Van der Chijs also mentioned that almost every censorship rumor isn’t true and just matches the way we, people from the west, like to see China. But here’s one thing that’s undeniable: 56.com (no. 3) has been off line for almost a month now. VentureBeat’s Eric Eldon wrote an excellent piece about this matter, and refers to several Chinese sources who claim 56.com has been taken off line by the government, particularly because they didn’t like 56.com footage of the earthquake in May. “We may never know the real reason why 56.com has been shut down”, Eldon wrote, “But if the cause is censorship, this is a tragedy for anyone who believes in the democratic system.”

There’s your cliff hanger people. Stay tuned to your blog to hear the latest on this soap opera where two forces clash on almost a daily basis: the money versus the government.

Rambler introduces contextual video advertising

Ernst-Jan Written on 30th June 2008                                                                                                              1 COMMENT some text
Ernst-Jan Pfauth, editor in chief

Rambler introduces contextual video advertisingRambler Media, one of Russia’s leading Internet companies (€38 Million in 2007), has announced contextual advertising for video content. Its advertising division – Begun – will integrate Begun.Videocontext on Rambler’s video sharing community, Rambler Vision. That means 1.3 million visitors per month will see the ads.

Each video appearing on Rambler Vision is tagged according to its content and as a result,
advertisements can be displayed beneath relevant videos. Rambler claims to be the first Russian web service to profit from contextual ads, which is remarkable, as online videos attract more Russian viewers than cable TV channels. Begun will sell the ads on a CPC bases.

If you’re a Russian reader, let me set you at ease: you can easily click the ad away.

[Via: Quintura]

Perfect Internet marriage: the French and online video

Ernst-Jan Written on 10th June 2008                                                                                                              6 COMMENTS some text
Ernst-Jan Pfauth, editor in chief

ComScore recently released data from their online video measurement service, indicating that 23.2 million French Internet users viewed 2.1 billion videos online in January 2008. That number of 23.2 million viewers makes up for 79.5 percent of the total French Internet audience.

Perfect Internet marriage: the French and online videoSo almost 80 percent of the French Internet users watched on average 90 videos in one month. The average video had a duration of four minutes. Please let me get this straight, January is a dark and cold month, Christmas is over and spring is far away, but… 90 videos?! Does French television programs suck that bad?

Although Google has the largest share in the French online video market (28.8 percent), French viewers watched a total of 28 million hours of online video on Dailymotion.com, more than any other site. So we’ve got a classic chicken and the egg story here. What came first? Are the French watching billion of videos online because of the successful video site Dailymotion? Or is Paris-based Dailymotion such a success because French people watch billions of videos?


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