Hualu, latest entrant in China's online video market

The Chinese state-owned company Hualu Group will soon launch a video website Hualu5.com via its subsidiary Hualu Culture Industry Company.

Hualu's online video website

The Liaoning province based company announced its intention to enter Chinese Internet video market next month.

Hualu Group is an electronics manufacturer focusing mainly on audio and video electric products.

Hualu5.com's business model will combine videos with e-commerce, including broadcasting of popular TV series, interactive advertising, and sales of Blu-Ray discs.

Hualu agreed with Internet shopping websites such as Amazon.cn and Dangdang.com to allow consumers to buy TV and movie products produced by Hualu on these websites.

The company has also partnerships with Chinese social networking sites such as the micro-blog zone of Sina.com and Kaixin001.com to allow users of these websites to interact with performers appearing in programs made by Hualu.

Fierce competition in Chinese Internet video market

Hualu's new website will have to compete with several other actors already present on the Chinese Internet video market.

Major actors include privately-funded Chinese online video ventures such as Tudou.com and Youku.com.

Hualu's advantage is that it owns a large number of copyrights and media industry resources.

The competition in the Chinese Internet video market is expected to become more and more fierce since other actors announced their intention to be parts of the race, such as US online video provider Hulu which recently unveiled its plan to enter China's market.