Platform competition in the online video industry : a comparison between the United States and Chinese markets

Abstract

Along with the popularity of broadband, online websites are transforming to complex multiple-side platforms (MSPs), bearing many kinds of products and services. The MSP format enables online websites not merely works as media between content producers and end users, but aggregates multiple parties together to create new values and leads. With vast amount of UGC (User Generated Content) and different methods of making revenue, YouTube and Hulu from the U.S. are leading online websites' platform transformation. Meanwhile, Youku, LeTV and Tudou, the imitators of YouTube and Hulu in China, are exploring their own "Chinese Style" to strive for success in China's huge online video market. Given the basic MSP model, this case study explores the critical factors that forge Chinese online platforms, by comparing administrative restraints, strategic operations, and revenue models of YouTube and Hulu. A general comparison of mechanisms between the U.S. online video platforms and Chinese platforms will be processed in terms of their initiative methods and growing strategies. Furthermore, several typical Chinese leading online video platforms are discussed and analyzed from aspects of their core strategies, operations, and targeted customers. We will use real transaction data, business contracts, and recorded interviews to figure out how they achieved their market position, in which area the company invested, and what their developing direction would be in the next couple of years.