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.
The US online video provider Hulu unveiled its plan to enter China's market.
Hulu, second largest video provider on the web
Founded in March 2007, Hulu is a website offering commercial-supported streaming video of TV shows and movies from NBC, Fox, ABC, and many other networks and studios.
The site focuses exclusively on professional content and does not take on YouTube directly as a viral video destination. It is currently the second largest video provider on the web. It also offers web syndication services for other websites including AOL, MSN, MySpace, Facebook, Yahoo!, and Comcast's fancast.com.
Hulu is a joint venture of NBC Universal (General Electric), Fox Entertainment Group (News Corp) and ABC Inc. (The Walt Disney Company), with funding by Providence Equity Partners, which made a US$100 million equity investment and received a 10% stake.
Hulu wants to go to China
In a speech at Tsinghua University in Beijing on June 5th, Hulu CEO Jason Kilar announced that Hulu 'plans to eventually launch services in China, and is currently considering allowing users to upload videos'. Hulu's videos are currently offered only to users in the United States.
Before entering China's market, Hulu will have to tackle with Chinese show and movie 'harmonization': any content that may be seen as controversial will have to be removed from the Chinese version.
The company has already established an R&D team in China after it acquired Bejing-based startup Mojiti in September 2007 and used its platform for the basis of the product.
China's online video market is today dominated by Tudou and Youku (let me remind you that Youtube is blocked in China) but Hulu might have an advantage since it will provide rich and original content.