Fei Yiqun, Senior Director of the Wireless Operation Department at Youku/Tudou discusses the domestic OTT video cooperation model for Youku/Tudou, operators, and Huawei.
The relationship between telcos and OTT service providers has evolved from outright competition into what some call "coopetition", where each side finds its niche in the ecosystem and cooperates when necessary for the betterment of both. Fei Yiqun, Senior Director of the Wireless Business Operation Department at Youku/Tudou (China's top two video sharing sites, which merged in 2012), discusses the domestic OTT video cooperation model for Youku/Tudou, mobile operators, and Huawei.
In August 2012, Youku/Tudou cooperated with China Unicom in Shanghai to launch a new monthly toll-gate package. If China Unicom Shanghai users visit Youku/ Tudou's sites via handset, a prompt will be presented asking them if they are willing to subscribe to a CNY10.00 (USD1.30) package that includes unlimited video clips and traffic from Youku/Tudou. It’s all up to the users, faced with the choice of scouring each and every corner for free Wi-Fi access or paying CNY10.00 to enjoy 3G network and unlimited video clips, without worrying about expensive data charges. Also, Youku/Tudou doesn’t have to transfer their video clips to operators’ platforms bit by bit; users can watch the video directly on Youku/ Tudou's sites.
Moreover, Youku/Tudou is now working with Huawei to seek cooperation with overseas operators to distribute Chinese content, as the Chinese diaspora is huge. If videos are offered on overseas operators' platforms, video quality and local users' experience will improve and may also create a new revenue-sharing model amongst the partners involved.
