China's largest online video company, Youku Tudou Inc., claims that original programming and a drive into mobile content will support the company as it looks into posting its first profit since its initial public offering in 2010.
Victor Koo, Youku Tudou Chairman and Chief Executive related in an interview in China today said, "Viewership on mobile applications for smartphones and tablets like Apple Inc's iPad was fifty percent higher this month that at the end of last year." Tudou Holdings Ltd was acquired by Youku in 2012 to lessen the cost for content and bandwidth.
Since its listing at the New York Stock Exchange, Youku Tudou has not been generating income well enough as a result of a stiff competition in online video market in China. In 2012, its net loss went double to 424 million yuan or US$69 million compared to a 172 million yuan a year ago.
Koo being so positive commented the company is on a "clear path to profitability," without mentioning when it will happen.
Koo added, "The losses are narrowing on a sequential basis. We are still in a growth investment mode, especially with mobile and original content. The good this is our revenue is also growing healthily."
Join the Conversation