Tudou

Launched on April 15, 2005, Tudou.com emerged as a significant player in China's digital landscape, establishing itself as a key video-sharing platform. The company was founded by Gary Wang and Marc van der Chijs, who conceived the idea to bridge the gap for creative talent in a media environment with tightly regulated television content. The name 'Tudou,' which translates to "potato," is a nod to the English term "couch potato," reflecting the founders' ambition to shift audiences from traditional television to online video.

Founder Gary Wang brought a unique blend of technical and business acumen to the venture. After earning a master's degree in computer science from Johns Hopkins University and an MBA from INSEAD, he worked at Hughes and later as a corporate development director for Bertelsmann Group in China. This experience provided him with insights into both Western and Chinese media markets, which proved crucial in navigating Tudou's growth. The company began with a modest self-financing of around $100,000, later securing a $500,000 seed round in 2005 and subsequent funding rounds totaling over $100 million from investors like IDG Capital, GGV Capital, and General Catalyst.

Tudou's platform catered to a broad audience by hosting a mix of user-generated content (UGC), professionally licensed movies and TV series, and its own original in-house productions. This hybrid model, combining elements of YouTube, Hulu, and HBO, differentiated it from competitors. Revenue was primarily generated through online advertising, including various ad formats integrated into its video content. The service allowed unregistered users to view videos, while registered members could upload unlimited content, fostering a large and active community. By mid-2007, Tudou commanded over 50% of the Chinese online video market and served over 55 million videos daily.

A major turning point in Tudou's history occurred in August 2011, when the company went public on the NASDAQ stock exchange, raising $174 million. Less than a year later, in March 2012, Tudou announced a strategic stock-for-stock merger with its primary competitor, Youku. The transaction created a new entity named Youku Tudou Inc., which became the undisputed leader in China's online video market. Following the merger, Gary Wang retired from his CEO role. The combined company continued to operate both Youku and Tudou as distinct brands to target different user demographics before being acquired by Alibaba Group in 2015.

Keywords: online video, video sharing, user-generated content, content licensing, digital media, China, Youku Tudou, Gary Wang, streaming service, online advertising