DCCI Gives High Marks to Youku in 1H 2008 Report 2008-07-17
Beijing, July 18 2008 –Youku, China's leading Internet video sharing site swept in all categories of measurement for the first half of 2008 in a report just issued by The China Internet Society Data Center of the Chinese Internet (DCCI) on Internet video sites. The report banishes any doubt that Youku ranks as China's leading video site.
Network monitoring data from DCCI showed that Youku ranked first in overall reach, video views, unique visitors, and frequency of visits, substantially widening its lead in the first half of the year. More significantly, total time spent by visitors to the site approached a monthly average of 100 million hours across the six-month period, with total video views in June exceeding 116 million hours and 4.6 billion views.
Over Half the Market: Youku has, for the first time, captured more than 50% of the total market share in time spent, setting it clearly above the number two competitor by about 80% in a contest that was, until this year, still considered by industry analysts to be a close-run race. Recent surveys conducted by other third parties, including Shenzhen-based Tencent, show Youku comfortably ahead of its nearest competitor in terms of brand recognition, streaming speed, overall user experience, variety and freshness of content.
Time is the Measure: Youku has long held that measures to rank Internet sites commonly used in the past do not provide an accurate reflection of video websites, and that viewing time needs to be factored in as a measure of product stickiness, content quality and user experience. By emphasizing this measure, the China Internet Society DCCI study recognizes the importance of this measure for video Websites. Youku founder and CEO Victor Koo stated that video views (VV) and unique visitors (UV), while still useful indicators of a site's traffic, do not accurately reflect a site's overall strength. Time spent by its user base is the result of long-term accumulation: It captures core stickiness, whereas these other indicators reflect a site's comprehensiveness and user awareness.
Ad Attraction: With current domestic Internet users in the range of 221 million people, Youku's nearly 100 million users means that nearly one in two Chinese Internet users are Youku users. Brand advertisers are assured of reaching a significant cross section, and can choose the most effective media in their planning.
The video industry has changed substantially from its beginnings in China, with mainstream, professionally produced long form content assuming an important role alongside the traditional, user-generated short form content familiar to users of YouTube. Youku has recognized that professionally produced longer form content has grown increasingly valuable in attracting brand advertisers and increasing the overall value of video inventory. In June, Youku officially launched a cross-media cooperative alliance strategy aimed at leveraging synergies between traditional television advertisers and this increasingly critical online medium.
Third Party Confirmation: The DCCI report aside, numerous third-party monitoring has reinforced the report's findings in recent weeks. iResearch's iUserTracker's latest June 2008 confirms DCCI's findings that Youku now holds a market share over 50%. The Baidu Index and Google Trends also illustrate that Youku's lead in the industry continues to grow.
While growing its dominant position in the industry, Youku has continued its policy of pursuing a high-end user base, attractive brand advertisers, and content in strict adherence to regulators. Fresh from a cash infusion of $40 million in venture capital funding and venture debt, the company is also riding high on its recent receipt of audio-video production and operation licenses from the State Administration of Radio, Film, and Television (SARFT). "It has always been our goal to create a safe environment for brand advertisers to reach a wide base of Chinese Internet users that come to our website everyday to watch videos," said Victor Koo.