Youku profit dominate the market due to hidden still popular videos

 IDG (Yuet Tung) Beijing January 19, according to foreign media reports, the famous analyst Zhang Xiaofan China concept stocks in the United States today, science and technology blog site seekingalpha.com author, said that Youku (New York Stock Exchange Securities Code: YOKU) the recent high market share mainly due to two popular videos,

Zhang Xiaofan the article is as follows:

Youku recent sharp rise in market share, and dominated the Chinese market. And its share price this year has also been more substantial growth, stock performance is so strong in part due to the confidence of investors in the company, investors seemed to believe Youku in the industry-leading flow will eventually translate into substantial profits. However, in my opinion, as Youku and the future profitability of the high valuation of the uncertainties facing, so I did not like the investors, over-optimistic about the future of Youku business and stock performance. I have two recent popular films, Video, Youku recently promoted to achieve such a dominant market position.

According to these official figures published on the website, Youku in these films the audience, it has already significantly ahead of other major competitors.

on the Sohu (NASDAQ ticker: SOHU) Sohu user Watch this video in the frequency has reached 500 million, compared to potato network users Viewed 120 million times. To tablets, compared with 3.4 million times the number of times, and Fantastic Art Web users to watch the film is 180 million times. All in all, these films are watched Youku is the other major competitors, the number of times the total number of 2.7 times.

in all the major online video providers, I think that Youku and Sohu is the online video industry's two major companies, the reason is very simple: only two companies to provide All the other major video sites can only play one of them. In my opinion, The absence of a competitor to other popular videos will be negative, but in any case, Youku and Sohu, the ability to provide comprehensive video allows users to log on this website are only willing to watch more hot movies.

fact, Youku and Sohu started from January 20, becoming the first online movies in China, number of users that Youku and Sohu comprehensive ability to gather popular videos better than other providers. Nevertheless, it seems to me that I still hold some concerns on Youku, mainly because of its high valuation and earnings risk. I think, for investors, Sohu also should be a safe place for investment. If in the future of online video industry fall apart, then there are other profitable business Sohu to support its own development, and unity will Youku business there are some uncertain risks. Even if the future of network video products will be as prosperous as the gold, then Sohu addition to developing other profitable business, the course will obtain video service from the network corresponding growth momentum.