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People’s Insights Volume 1, Issue 12 : Youku Tudou Inc.


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50+ thinkers and planners within MSLGROUP share and discuss inspiring projects on corporate citizenship, crowdsourcing and storytelling on the MSLGROUP Insights Network. Every week, we pick up one …

50+ thinkers and planners within MSLGROUP share and discuss inspiring projects on corporate citizenship, crowdsourcing and storytelling on the MSLGROUP Insights Network. Every week, we pick up one project and do a deep dive into conversations around it -- on the MSLGROUP Insights Network itself but also on the broader social web -- to distill insights and foresights. We share these insights and foresights with you on our People’s Insights blog and compile the best insights from the network and the blog in the iPad-friendly People’s Lab Quarterly Magazine, as a showcase of our capabilities. This week, our topic is Youku Tudou Inc. . For more, see:

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  • 1. crowdsourcing | storytelling | citizenshipPeople’s Insights: Volume 1, Issue 12YouKu-Tudoumerger
  • 2. Youku and TudouYouku and Tudou are two of the largest online video streamingcompanies in China. They enable users to search, view and share videocontent that is licensed, user-generated and created in-house.Source:,
  • 3. Fierce rivalryA year ago, they traded charges of copyright infringement. Youku suedTudou for $762,000, claiming losses due to Tudou’s misuse ofcopyrighted videos. They have also been fighting for market share.Source:,
  • 4. Youku buys TudouYouku is buying Tudou in an all-stock deal worth more than $1 billion,creating Chinas largest video sharing website. Youku shareholders willown 71.5% of Youku Tudou Inc. Tudou shareholders will get the rest.Source: ,
  • 5. Competitive marketChinas online video market is very competitive. There were rumours that Tudouwould be bought by one of the 10 players. Acquiring a company of its size, wouldbe a major setback for other firms, hence Youku ensured it beat other firms to theacquisition.Source: ,
  • 6. Consolidation to combat issuesIncreasing cost of bandwidth and content, a well as the nascent admarket, have hurt the business. Last year, Tudou and Youku reportednet losses of $81.2 million and $27.2 million respectively.Source: ,
  • 7. Creation of a monopolyYouku Tudou Inc will be the leading online and mobile video platform inChina. It will benefit from a combined user base, a huge content libraryand sturdy bandwidth infrastructure. The merger will help cut costs too.Source: ,
  • 8. Coming of ageAnalysts said that the union is good for the highly competitive industrythat caters to Chinas 500 million internet users. Social media has alsotaken off recently, with over 235 million users in 2011.Source: ,
  • 9. Impact on consumersConsumers are not bothered about the merger other than the changes itwill mean for the user experience. Some think the near-monopoly willmean more ads, longer loading time and poorer content.Source:
  • 10. Impact on TV stations, advertisersTV stations and producers could initially sell content to both websites,but not any more. Their revenue will reduce. Even though advertiserswont spend on both, they will have to spend more on the new platform.Source: ,
  • 11. The futureProfits will be hard to come by. Youku Tudou Inc will have to find a way tominimise losses. It will command 35-40% of Chinas online video market. Smallplayers will become attractive acquisition targets for large players to compete.Source:, ,
  • 12. More People’s Insights Weekly reportsEvery week, we dive into one topic for discussion on the MSLGROUPInsight’s Network and discuss insights and foresights, in three keyareas: crowdsourcing, storytelling and citizenship. Crowdsourcing Storytelling: Citizenship Mahindra Spark the Rise @MarsCuriosity #Kony2012For more reports, visit:
  • 13. Read People’s Lab insights and foresightsThe People’s Lab team shares the insights and foresights from theMSLGROUP Insights Network on the People’s Insights weekly blog andthe People’s Insights Quarterly magazine. MSLGROUP Insights People’s Insights People’s Insights Network weekly blog Quarterly magazine 50+ MSLGROUP planners We deep dive into Every quarter, we will compile share and discuss inspiring conversations around one the best insights from the projects on corporate project -- on the MSLGROUP network and the blog in the citizenship, crowdsourcing and Insights Network itself but also iPad-friendly magazine, as a storytelling. on the broader social web -- to showcase of our capabilities. distill insights and foresights.For more, visit
  • 14. Coming soon: People’s Insights AnnualReportIn early January 2013 we will publish the People’s Insights AnnualReport, in which we synthesize our insights from throughout 2012 andprovide foresights for business leaders and change-makers for 2013.
  • 15. People’s Lab: Crowdsourcing Insights &InnovationPeople’s Lab is MSLGROUP’s proprietary crowdsourcing platform andapproach that helps organizations tap into people’s insight forinnovation, storytelling and change.For more, visit
  • 16. For People’s Labsolutions,