A near time ago, Xiaomi announced an investment value about US$ 300 million on a company that is the manufacturer of a popular video platform, iQiyi. It is the second Xiaomi investment on video segment after investing with also big value to other competitor streaming video platforms namely Youku, last November.
Xiaomi executives beforehand have ever said their intention to release some investment fund up to US$1 billion for online video content service, including funding a number of original content productions. Such an aggressive action in video online world is not surprise besides Xiaomi smartphone also has released TV and set-top box MiBox products at early years.
The beginning of the Xiaomi product variants which are content-minded typical is not forcing Xiaomi directly to think about extra service to attract consumers to stay with its product.
Either iQiyi or Youkou offers local content as well as Hollywood movies and also produces their own content including a number of web series. Unlike US consumers, China’s consumers are considered so active enjoying shows broadcasted in streaming way.
Online video iQiyi service built by a giant search engine company, Baidu, reputedly has a bulk number of visitors around 50 million a day. It is predicted that the visitors spend more than 1.28 billion hours to enjoy TV shows and movies every month. The Youkou service is also as big as iQiyi’s. Since acquisitioning video sharing service, Tudou in 2012, Youkou has about 500 million active users.
A number of TV shows broadcasted via terrestrial antenna, cable, satellite, or IPTV commonly are dominated by government-TV station, CCTV which stands for China Central Television. The content of the CCTV broadcast tend to be monotonically and also too much censors applied on the programs. That is why China residents tend to take online content from Internet as their alternatives.
This is such an ironical fact, regarding they realise that China government sooner or later will control the existing video online broadcasts especially west-contents.