Tudou.com expects to break even in 2010
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TUDOU.COM announced today it will invest 100 million yuan (US$14.75 million) in content and expects to breakeven next year, thanks to the booming advertising income and expanded mobile business.
The major Chinese video Website will probably the first firm to turn black in the fiercely competitive Chinese online video market, which has attracted millions of dollars of venture capital in the past few years.
Meanwhile, Tudou has signed with China Mobile to launch video content on handset for more than 700 million Chinese mobile phone users.
"Content is king," said Gary Wang, Tudou's founder and chief executive. "We are ready to invest heavy strategically and financially to bring Tudou from UGC (user-generated-content) sharing to an online video powerhouse within the next 12 months."
Tudou is expected to reach break-even by the end of 2010 while rivals like Youku.com haven't announced a timetable to profitability.
Tudou's main income still comes from advertising, which is expected to rebound after the financial crisis, analysts said.
In 2009, Chinese online advertising revenue is expected to reach 21.64 billion yuan, a 27.2 percent growth year-on-year, according to iResearch, a Shanghai-based IT consulting firm.
