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Government restrictions are driving young Chinese to turn off their TV sets and turn on their computers. Advertisers and Western studios are right there with them.
China's streaming-video sites once were derided by the global entertainment industry as homes of stolen movies and television shows. But many sites have cracked down on piracy and are offering original programming, as well as licensed Western movies and TV shows such as "Gossip Girl" and "Mad Men."
As a result, ad revenue for Chinese video websites operated by Youku Inc., Tudou Holdings Ltd., Baidu Inc., Sohu.com Ltd. and others surged to 1.48 billion yuan ($235 million) in the third quarter, up 48% from the second quarter, according to market-data firm Analysys International.
Some sites are starting to offer some premium content, charging Chinese consumers for each viewing or on a monthly basis. "People are getting used to paying for content," said Gary Wang, chief executive of Tudou, which has about 12 million paying mobile subscribers.
