Chinese video site Youku Tudou Inc. has allocated 10 billion yuan (US$1.6 billion) worth of funds and resources to support user-generated content (UGC) on its platform over the next three years.
Speaking at an event in Beijing on Thursday, chairman Victor Koo said the New York-listed company aims to build the best platform for startups in the cultural and entertainment industry.
Under its three-year UGC plan, the company will nurture 100,000 video channels operated by semi-professional users and organizations with more than 1,000 subscribers each, QQ.com reported.
About 10,000 of the channels, known in Chinese as Zi pindao, are expected to generate a monthly advertising income of over 10,000 yuan each.
It also expects to have 100 channels valued at over 100 million yuan each, the report said.
At the moment, the site has more than 10 channels with such a valuation. These include the highly popular Rage Comic channel.
Youku Tudou said over half of its current traffic goes to UGC content.
It also plans to produce virtual reality content.
Meanwhile, Koo announced that the company has changed its Chinese name to Heyi Group (合一集团).
The English name will remain the same for the moment, a spokesperson said.
“It hasn’t been long [since we made the name change decision], so we hardly had time to think about [the English one]”, Chen Ji told EJ Insight.
“Heyi” means syncretize, possibly referring to the merger of leading Chinese online video sites Youku and Tudou in 2012 and implying a tighter integration.
It is also the name the company has given to the movie production and investment arm it launched a year ago.
– Contact us at [email protected]