YouTube/Google has Chinese competition

Introducing WangYou Media. It’s basically a Chinese YouTube. The CEO just sent us a highlights clip for the Vloggies tonight (by the way, I hear a famous Hollywood director will be there). Lots of fun stuff. Too bad we can’t get translations of the site and a fast mirror over here. You can certainly see why Google and YouTube are gonna have a tough time going up against sites that are developed locally inside China. The Chinese search engine Baidu is giving Google a run for its money inside China and on CNBC the other day the CEO of Baidu said they are looking to expand outside of China.

Long term this is going to be a fun competition to watch. What’s at stake? A market of billions of people and if either of these brands can break out of the Chinese markets — even more.

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22 thoughts on “YouTube/Google has Chinese competition

  1. I am not so sure. Well, i cant say much about china. But i could say something about the other giant – India. I suppose things are pretty similar in china too.

    Population – 1 billion, Netizens – 75-80 million. Thats still quite a number. But the amount of people that do anysort of purchase online would be less than a couple of millions. Thats pretty much the ‘market’ thats there in india for online companies. Most of the online businneses that cater to Indians depend on the Non resident ones for their revenue and profit.

    My point is – even though the audience is very high the actual business potential is quite low.

    The other thing is that the cost of software and its development is exorbitant. For ex, the hiring market is controlled by the salaries marked by the American companies. So for a company to be a a ‘google’ in india, their profit % has to be 10 times more than the actual Google. Remember, the customers would happen in the local currency and the salary expense would be in $$. The differential is huge. (In India – 45 rupees make up a USD)

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  2. I am not so sure. Well, i cant say much about china. But i could say something about the other giant – India. I suppose things are pretty similar in china too.

    Population – 1 billion, Netizens – 75-80 million. Thats still quite a number. But the amount of people that do anysort of purchase online would be less than a couple of millions. Thats pretty much the ‘market’ thats there in india for online companies. Most of the online businneses that cater to Indians depend on the Non resident ones for their revenue and profit.

    My point is – even though the audience is very high the actual business potential is quite low.

    The other thing is that the cost of software and its development is exorbitant. For ex, the hiring market is controlled by the salaries marked by the American companies. So for a company to be a a ‘google’ in india, their profit % has to be 10 times more than the actual Google. Remember, the customers would happen in the local currency and the salary expense would be in $$. The differential is huge. (In India – 45 rupees make up a USD)

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  3. Chinese have a great sense of humor and will definitely be competition for Google. The winner will be the most outrageously funny and entertaining. This diversity is great for tech!

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  4. Chinese have a great sense of humor and will definitely be competition for Google. The winner will be the most outrageously funny and entertaining. This diversity is great for tech!

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  5. The interesting thing to me will be when the company attempts to expand outside of China. What will they do with people that are used to being free to say and do, for the most part, what they want?

    Will they have to have different sites for different cultures? It will backfire if they try to keep it one site and operate the way they do in China now.

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  6. The interesting thing to me will be when the company attempts to expand outside of China. What will they do with people that are used to being free to say and do, for the most part, what they want?

    Will they have to have different sites for different cultures? It will backfire if they try to keep it one site and operate the way they do in China now.

    Like

  7. Pingback: China Law Blog
  8. Hi Robert, Great Blog! Love it! Yes, the China syndrome is growing all over…I just sent you a mail (hint-hint, please read it! 😉 re: implementing Mobile Messenger for a major European Operator – – in that arena there is also some incredible competition coming from China to provide the dowloadable client for your mobile…maybe not “certified” by MSN, but showing to work incredibly well (at least in our tests). Hope to hear from you soon….

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  9. Hi Robert, Great Blog! Love it! Yes, the China syndrome is growing all over…I just sent you a mail (hint-hint, please read it! 😉 re: implementing Mobile Messenger for a major European Operator – – in that arena there is also some incredible competition coming from China to provide the dowloadable client for your mobile…maybe not “certified” by MSN, but showing to work incredibly well (at least in our tests). Hope to hear from you soon….

    Like

  10. Though they probably like the comparison for valuation purposes (like ‘Baidu = China’s Google’) Wangyou Media is quite different from YouTube as it not only gathers but acutally promotes (‘online Chinese Idol’) and leverages user-generated content through other media like FM radio, outdoor TV, etc. (a model fairly unique to China).

    As a side note on some comments, China is way more open that it was on freedom of speech and Internet is an unprecedented channel for people to channel their opinions and creativity. In addition, the Internet in China is a lot more open than described in foreign media (far from the ‘China LAN’).

    Disclosure: we are based in Beijing and consult for Wangyou Media and other Chinese Web 2.0 companies

    Cheers from Beijing,

    — Benjamin Joffe
    CEO, Plus Eight Star Ltd [+8*]
    http://www.plus8star.com
    http://www.mobilemonday.cn
    http://www.insidecyworld.com

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  11. Though they probably like the comparison for valuation purposes (like ‘Baidu = China’s Google’) Wangyou Media is quite different from YouTube as it not only gathers but acutally promotes (‘online Chinese Idol’) and leverages user-generated content through other media like FM radio, outdoor TV, etc. (a model fairly unique to China).

    As a side note on some comments, China is way more open that it was on freedom of speech and Internet is an unprecedented channel for people to channel their opinions and creativity. In addition, the Internet in China is a lot more open than described in foreign media (far from the ‘China LAN’).

    Disclosure: we are based in Beijing and consult for Wangyou Media and other Chinese Web 2.0 companies

    Cheers from Beijing,

    — Benjamin Joffe
    CEO, Plus Eight Star Ltd [+8*]
    http://www.plus8star.com
    http://www.mobilemonday.cn
    http://www.insidecyworld.com

    Like

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