Youku, Tudou focus on mobile video

According to Youku, the company will offer content provided by its clients on select phones, just as the videos are seen on the web, capitalising on the growing influence of mobile in the market.

The news comes as Tudou also announced the launch of a video widget for Nokia phones, provided through Tudou’s website and Nokia’s Ovi store.

Reports note that the widget also allows audiences to watch Tudou content just as they would from their computers.

According to senior analyst at BDA China Ning Liu, the video sites’ emphasis on mobile comes at an appropriate time as the introduction of 3G has raised audiences' interest in portable multimedia.

“Due to the launch of 3G, most operators and handset venders want to introduce everything form mobile TV to mobile games, and both Youku and Tudou are very popular in China and I think these two companies are able to get some market share early and are able to compete with existing mobile players,” he said.

And for Youku, the news is in line with its strategy to make mobile a more prominent platform. In April, Youku first teamed with Nokia to broadcast a live, three-hour concert as part of a promotion for Nokia's XpressMusic handset. At the time, the companies looked to attract one million viewers through a line-up of international pop performers and engagement through an interactive minisite and video pressroom.

One month later, Youku trialed its 3G mobile site, which was built with the help of Beijing Telecom.

“Where 2009 has been the year for 3G infrastructure roll-out, we see next year, 2010, as the first year in which we'll see 3G applications starting to really hit the market,” said Youku’s CEO Victor Koo (pictured). “Making applications easy to use is a big priority for mobile phone manufacturers, and brands like Sony-Ericsson are working with video content providers like Youku to offer seamless solutions to let 3G subscribers watch video for the first time on their mobile handsets.

“Over time, we think there's real revenue potential in this, too: wireless users historically have been more accustomed to paid subscription services than their PC internet counterparts, so we think down the road this could become a meaningful revenue stream for Youku,” he continued.

According to reports, the site will receive an upgrade later this month.

Liu additionally notes that Youku has been able to team with powerful mobile players because it “prepared earlier in the mobile sector than Tudou”, and gaining this leg-up will enable it to pull ahead of its competitor early on, gaining more recognition and revenue.

“It’s been known that Youku launched its WAP portal and also had a very close relationship with Nokia maybe half a year ago, which helps in distribution,” he said. “It’s engaged in online promotion with online video, and I’m not very familiar with Tudou’s mobile service.”