Youku
| Company type | Subsidiary |
|---|---|
| Industry | Video streaming |
| Founded | 2006 |
| Founder | Victor Koo |
| Headquarters | Beijing , China |
Area served | China |
Key people | Victor Koo (Chairman) |
| Products | Video streaming platform |
| Parent | Alibaba Group Holding Limited |
Youku Tudou Inc. (previously known as Youku Inc.), operating under the brand Youku (), is a video streaming platform headquartered in Beijing, formerly recognized as a video sharing website. It operates as a subsidiary within the Alibaba Group Holding Limited conglomerate.
The company’s main office is situated in Sinosteel Plaza, located in Beijing's Haidian District.
On 12 March 2012, Youku combined forces with its competitor Tudou through a stock swap agreement, resulting in the formation of Youku Tudou Inc. By 2014, the platform boasted more than 500 million monthly active users alongside 800 million daily video views.
Among China's top online video services, Youku competes with platforms such as iQiyi, Sohu, LeTV, Tencent Video, PPTV, 56.com, and Funshion. Nevertheless, Baidu’s iQiyi overtook Youku in 2015 to claim the leading market position.
History
Youku was established by Victor Koo (Gu Yongqiang), who previously served as the President of the Chinese internet portal Sohu. The initial capital was provided by 1Verge, a fund he created. A beta release appeared in June 2003, followed by the full launch in December of the same year. In 2007, Youku raised $25 million from venture capital investors, and by December 2009 had accumulated $110 million in private equity funding from backers including Brookside (Bain) Capital, Sutter Hill Ventures, Maverick Capital, and Chengwei Ventures.
While initially centered on user-generated content, Youku transitioned to offering professionally licensed videos sourced from over 1,500 content providers.
By January 2010, according to CR-Nielsen rankings (taking into account YouTube’s ban in China), Youku held the top position in China’s internet video market. In 2008, it partnered with Myspace China and became the exclusive online video provider integrated into the Chinese edition of Mozilla Firefox. In January 2010, Youku collaborated with rival Tudou to establish a video broadcasting exchange network for cross-licensing professional content.
In 2009, Youku generated gross revenues amounting to 200 million RMB. On 8 December 2010, the company went public on the New York Stock Exchange, closing at $33.44 per share and achieving a market capitalization near $3.3 billion. For the first three quarters of 2010, revenue totaled $35.1 million while reporting a loss of $25 million.
Victor Koo’s background includes experience at Bain & Company, a prominent management consulting firm.
In December 2018, Yang Weidong, president of Youku’s division, was dismissed amid an anti-corruption probe.
On 2 September 2020, due to geopolitical conflicts, the Youku mobile application was prohibited in India.
According to Quest Mobile data, Youku’s monthly active users expanded from 374 million in December 2017 to 448 million by December 2024.
Alibaba’s Q4 2023 financial statements disclosed a $1.2 billion loss linked to Youku’s operations, which was written off to sustain the streaming business.
Merger
On March 12, 2012, two major Chinese online video enterprises—Youku and Tudou—announced their intention to merge, creating one of China’s largest video platforms. Prior to this consolidation, Youku ranked eleventh and Tudou fourteenth among Chinese websites. The merged company adopted the name Youku Tudou Inc., with Victor Koo serving as chairman. The firm remained listed on the NYSE under ticker YOKU until its acquisition by Alibaba Group on November 6, 2015. By December 2016, Youku Tudou had amassed approximately 30 million subscribers.
Transition to professional programming
During its initial public offering in 2010, Youku already possessed an extensive collection of licensed, professionally created content, highlighting the relatively low popularity of user-generated videos in China at that period. The emergence of IQiyi in 2010 introduced significant competition for Youku around 2015, ultimately influencing Alibaba’s decision to acquire the platform. Following this acquisition, Youku progressively moved away from user-uploaded videos and by 2019 focused solely on professionally produced shows, adopting a strategy comparable to Hulu's. In contrast, since 2019, platforms such as BiliBili and Douyin have fueled a notable increase in user-generated video content within China.
See also
Further reading
External links
- Articles with short description
- 2006 establishments in China
- Chinese brands
- Companies based in Beijing
- Chinese entertainment websites
- Haidian District
- Internet properties established in 2006
- Chinese companies established in 2006
- Online companies of China
- Alibaba Group acquisitions
- Internet censorship in India
- Bain Capital companies