Victor Koo

The online video business started in both China and the US around 2005/6, when broadband penetration grew big enough.

If Youku had adopted YouTube's business model, we just would not be here. We would not exist.

Youku Tudou kicked off 2014 in a positive direction. Mobile has become the number one screen for Youku Tudou, and we are the undisputed leader in all of the important mobile video traffic metrics.

Remember, when YouTube was founded in the U.S., America's Funniest Home Videos had been around for a long time. In China, the history of TV as well as user-generated video is very, very short. So, we've actually had to do a lot of things to motivate that.

In the U.S., search engines are king. That is because everyone already knows what they are looking for. Brands have been around for a long time.

Both YouKu and Tudou do original content for a number of years, and we position it based on our difference in terms of age demographic. And so the content itself is really more suitable for the brand itself.

The advertising market in China is big and is still growing at a considerable pace. While online video is emerging as a mainstream advertising solution, it still represents a relatively small portion of advertising budget in China.

On the monetization front, our strengthening leadership in internet user base and broadening reach of our platform have already positioned us as a must-buy platform in online video for brand advertisers to reach a nationwide audience within China.

The combined entity Youku Tudou Inc. represents a dominant leader in online video sector in China with the largest user base, most comprehensive content library, most advanced bandwidth infrastructure, and most effective monetization capability.

Since our inception, Youku Tudou as the leader in the multi-screen video space has helped transform how video and entertainment-related content is distributed and marketed.

Youku Tudou has helped transform how media and entertainment-related content is distributed and marketed since our inception.

On top of opportunities in further traffic growth, there are increasing opportunities to fully realize the potential of the online video ecosystem, as China continues to evolve into a consumer-driven economy.