Weiying Technology and Tencent invested $55 million USD and $30 million USD, and now hold 8.2% and 4.5% stakes in YG Entertainment, respectively.The round makes Weiyang and Tencent the third and fourth largest shareholders of the company following the founder and the top shareholder of YG Entertainment, Hyunsuk Yang, and L Capital Asia.This move is to meet the huge appetite in China for Korean entertainment such as music, concerts and variety shows, commented a spokesperson from Tencent in a press release.Tencent s QQ Music previously signed an exclusive content partnership with the company.The two companies are also preparing other reality shows covering Korean fashion trends and beauty content.South Korean content providers on Chinese multimedia platforms have established themselves as lucrative businesses in recent years.This year, Korean military romance drama Descendants of the Sun 太阳的后裔 was partly funded by Chinese investors and exclusively broadcasted on iQiyi, with 440 million views recorded on the video streaming site.The patents for South Korean reality shows like Running Man  奔跑吧兄弟 and Where Are We Going, Dad?爸爸去哪儿 have been sold to Chinese production houses, where local celebrities are cast in the Korean shows to draw the national fandom toward homemade spin-off episodes.
Online video in China is starting to look more like Netflix NFLX -1.08 % and less like YouTube, as more users agree to pay for subscriptions.The growth of paid online video subscribers is a departure for Chinese online users, who were notoriously reluctant to pay for content and had easy access to pirated DVDs and online sources.The competition for better and exclusive content to attract users led to big losses.These appealed to professionals in big cities, but proved too foreign to many Chinese youth in smaller cities, home to iQIYI s biggest chunk of subscribers.Mobile payment services such as Alibaba s Alipay and Tencent s WeChat made it easier to pay online because many Chinese still don t have credit cards and paying on a personal computer can be cumbersome.She agreed to pay after iQIYI in February started airing a South Korean romance series, The Descendants of the Sun, featuring Song Joong-ki and Song Hye-kyo—actors who are megastars in China.
MorePeople sit in front of the company logo of Baidu at its headquarters in Beijing December 17, 2014.BEIJING Reuters - Baidu Inc's proposed sale of online video unit iQiyi to its own chief executive is not in the interests of long-term shareholders and may permanently damage the reputation of the company, an investor in the Chinese internet firm said.In February, Baidu received an offer for its 80.5 percent stake in iQiyi from the chief executives of the two firms."We worry that embracing what is an inherent conflict of interest will lead to damage to the reputations of both you and Baidu," Acacia Partners said in a July 18 letter to Baidu CEO Robin Li.The letter was distributed to media through public relations firm Finsbury, part of communications firm WPP."It is better for Baidu to be regarded as a key institution, not the extension of the pocketbook of one man," the letter said.
Acacia Partners LP, an investor in Baidu Inc., criticized the search company for considering a sale of its video unit to a group led by its chairman at a price that is far too low.IQiyi.com, a Netflix-like streaming platform, should be a valuable and important contributor to the company and a sale is against Baidu s interests, the hedge fund said in a letter to Li that was made available to Bloomberg News.It cited valuations on the business of $5.8 billion compared with the $2.8 billion valuation suggested in a buyout offer put forth by Li and iQiyi.com chief executive Yu Gong in February.Acacia said it owned more than 2.6 million shares in Baidu worth over $400 million, according to a letter distributed to media by the Finsbury Group.Baidu declined to comment, verify it received the letter or confirm Acacia is a shareholder.Calls to Acacia s New York office outside of normal business hours were directed to voicemail.Your offer to buy out iQiyi is rife with conflicts of interest that we believe in a few years will paint a picture of Baidu corporate governance that is much uglier than the current admiring and respectful view, Acacia said.
Baidu Inc. s billionaire Chairman Robin Li pulled out of talks to buy control of the company s streaming video service iQiyi after failing to reach an agreement on its price and structure.An investor group led by Li and Qiyi.com Inc. Chief Executive Officer Yu Gong offered to buy out Baidu s 80.5 percent stake in February - a deal that conferred a $2.8 billion enterprise value on the Netflix-like service.The pair informed the board they re retracting that offer after failing to strike a deal despite several rounds of discussions, Baidu said Monday.The collapse of talks comes a week after the proposal drew sharp criticism from shareholder Acacia Partners LP, which condemned the price as far too low and cited research valuing Qiyi.com at $5.8 billion.Selling the loss-making streaming business had been viewed as important to whittling down rising expenses as China s largest search engine spends billions diversifying its business, from on-demand internet services to driverless cars and artificial intelligence.The purpose of separating Qiyi.com from the core business was to raise money in China s stock market, said Henry Guo, an analyst at M Science LLC.The deal was scrapped because of changes in the regulatory environment that s made it difficult for loss-making companies to go public, and not because of the opposition from Acacia Partners LP, Guo said."It s really hard for the iQiyi business to go public anytime soon in China -- the business has to be profitable," Guo said in an interview."In the future, huge investments in iQiyi will continue to pressure Baidu s business.
Robin Li Yanhong Chief Executive of Baidu speaks to the media in Beijing on March 03, 2015.Baidu s Chairman Robin Li has dropped a US$2.8 billion bid to buy out the shares of the company s video-streaming service Qiyi.com iQiyi , after a major shareholder objected to his lowball offer, in a setback to his plan to spin off China s top online video site.Li and iQiyi s Chief Executive Officer Yu Gong had not been able to reach an agreement with Baidu on transaction structure and purchase price after rounds of discussions and negotiations , Baidu said in a press release on Monday night.Li and Yu proposed to buy 80.5 per cent of iQiyi in February, valuing the entire business at US$2.8 billion.That s lower than the US$4.8 billion valuation for iQiyi s competitor Youku Tuduo, owned by Alibaba Group Holding China s top online video site by subscribers, iQiyi has more than 20 million subscribers paying for content as of June, and is valued at US$5.8 billion by Shanghai market-research firm 86Research.In an open letter to Li last week, New York-based hedge fund Acacia Partners, which owns US$400 million in Baidu shares, said the proposed iQiyi sale is an inherent conflict of interest which could create the impression that Baidu was the extension of the pocketbook of one man .
The Chinese video sites Martin Lau was referring to are competing aggressively in terms of content creation, while financial growth is still limited.He pointed to limited revenue streams as a problem in the industry, which has become bloated.As of June 2016 China had had 514 million online video viewers, over 70% of total Chinese internet users, according to China Internet Network Information Center.Mobile video streaming users reached around 440 million.There s no doubt that on-demand video streaming has been eating up the market share of traditional TV, and easy, free access to a massive legitimate online video libraries across the Chinese web has made piracy less appealing.So why is China s online video streaming market unhealthy ?Youku-Tudou, the resulting company of the 2012 merger between the then two biggest Chinese video streaming websites, has lost its dominant position in a new round of competition.The challenging competitors are either backed by deep-pocketed tech companies or have an advantage in content.They include Baidu-backed iQiyi, LeTV.com, whose domestically listed parent company LeEco has become a leading online video-centered hardware and software company, Mgtv.com, the online streaming site of the leading TV broadcaster Hunan Broadcasting System, and the homegrown video site by Tencent.No matter with which model they started with, usually YouTube or Hulu , these major players have since become very similar in both content and business model.The majority of their revenues is from free tier advertising, an increasing portion is from premium subscriptions and a minority is from other online offerings such as games.In the third quarter of 2015, just before it was acquired by Alibaba, Youku-Tudou took 79% of their total revenue from brand advertising and 15% from subscriptions, virtual item sales though their live streaming service and mobile games.After the merger, Youku-Tudou expected their scale and a potential drop in content prices would lead to profitability.Youku-Tudou only reported a couple of profitable quarters before the Alibaba acquisition, with the biggest increases in cost attributed to content.Since this time last year, some of the major player have begun heavily promoting their commercial-free premium subscriptions with exclusive and original content that has sparked a new race for exclusive content and subscriber acquisitions.
Revenue generated by China s film industry will reach RMB 200 billion US$30 billion by 2020, with both box office revenue and number of movie-goers surpassing that of North America, making it the largest film market in the world, says a new report by professional services firm Deloitte.For those who are banking on the continued rise of the Chinese film industry, optimistic forecasts like that are particularly welcome at the moment, especially as box office sales have been declining for the first time in five years, and theater visits in July alone plummeted 15 percent.While Deloitte s researchers expect the industry to grow at home, it will be uneven growth, and importantly, it won t necessarily translate into global domination for China as cultural differences and legal considerations interfere with the country s ability to export their own films to other countries.Those are among the key findings of a chapter on the film industry in Deloitte s new report, The New Journey of Internet , which takes a broad look at how the Internet is affecting the growth of the Chinese economy.Despite recent road bumps, the report s researchers believe the Chinese film industry has already reached a golden age with new carriers, an influx of capital, and innovative business models all propelling the country s film industry to the top of the film pyramid.From Bigger to BiggestThe report finds that China s box office revenues and number of moviegoers are expected to surpass North America by 2020.But different segments of the industry, whether it is film consumption, investment in films and theaters, or film exports, will grow at different rates.As revenue generated from non-box office activities continues to rise, the report s researchers believe China s film consumption still has a lot of room to grow.The report sees investment in theaters stabilizing with plenty of opportunities for steady expansion into second, third, and fourth-tier cities.Film exports are likely to struggle, as cultural differences and legal considerations including censorship issues as reasons why Chinese films won t gain traction overseas.2.From Made in China to Made for the World The report predicts co-productions will increase, albeit slowly.Co-pros can achieve win-win outcomes for both parties, because they re considered to be Made in China and enjoy the same treatment as domestic films, the reports says, In 2014, though co-productions accounted for only six percent of total productions screened in China, they contributed around 50 percent of total box office revenue, the report notes.However pulling off a successful co-pro is easier said than done, with issues such as copyright ownership, cultural differences, and different work styles presenting challenges.3.
Dalian-based entertainment company Zeus announced on Monday that it will terminate its investment attempt in tech giant Baidu s independent video subsidiary, an entity which was spun off in April.The investment from Zeus was going to be as much as RMB 192.5 million USD 28.8 million and was stopped for policy reasons, as Zeus put it.Zeus said in an announcement last Wednesday that it is a joint venture company, and that according to China s new Internet video policies, only state-owned or state-controlled companies can apply for licenses to broadcast or stream video online.As Zeus s planned investment would have been to the disadvantage of Baidu s video subsidiary company, Xiaodu Entertainment Xiaodu Huyu .Zeus announced that this was another factor in its decision to terminate its investment.Sina Tech said in its report on Monday that Baidu Video s profits were RMB 45 million in 2015, and that the company aimed to go public within three years of its independence from Baidu.Baidu video platform has gathered 580 million videos and 300 million users.The independent subsidiary company now consists of three parts: Baidu video, Baidu-backed online video streaming platform iQIYI, and Baidu s group-buying platform, Nuomi.Chinese authorities issued regulations on September 9 restricting Internet audio-visual programs services, influencing both video websites and live streaming platforms.Tencent Tech said in a report on Sunday that there are now only seven licensed video websites in China.Whether it goes public or not, Baidu s video subsidiary has to get licensed first, and the clock is ticking.The case may put more pressure on Baidu, since its latest financial report shows a YoY net profit decrease of 34.1%, a decrease which has been attributed to its earlier medical ads scandal.On Sunday, Baidu fired 30 staff involved in 17 corruption cases.10 of the 17 cases were related to Nuomi; other Baidu departments involved included Customer Development, Business Cooperation and Tieba, Baidu s prominent BBS.
Search engine Baidu Inc., e-commerce company Alibaba Group Holding Ltd. and game-and-social-media company Tencent Holdings Ltd.--known collectively as BAT—all have used a combination of minority-stake investments in startups and acquisitions to ensure they don t miss out on big trends and can build wide-reaching ecosystems that reinforce their core businesses.Alibaba spent some $4 billion last year to acquire Youku Tudou to compete with Tencent Video and Baidu s iQiyi—meaning all three of China s biggest video sites are under the BAT troika.I have written before about how the big three act as kingmakers among China s startups.But the impact is farther-reaching.The net effect is that while the three of them compete aggressively with each other, they also pre-empt broader disruption by gobbling up share in developing sectors of the industry.The monopoly power of BAT is much greater than the internet giants in the U.S., says Xinlei Chen, professor of marketing at Shanghai Jiaotong University.
Look Out, World!On top of being the world s largest phone market with the greatest number of netizens, and the nation with the most iOS downloads, China s is casting off an image of frugality– to pay is to die no longer applies here–as in Q3 this year, China becomes iOS App Store s most valuable patron, found App Annie s in a recent report.Revenue coming from China surpassed the US by 15% in the last quarter, coming down to 1.7 billion USD, 15% higher than the United States, a total that is taking the world to uncharted territories in terms of the amount spent by any nation in a single quarter.Maintaining the trend from the last quarter when China overtook the U.S. as the leader in game category spending, the sub-sector that brings in the lion s share of revenue 75%, says App Annie , China was again the world s most generous in this quarter in this respect.Paying for games is conventional you might argue, but the biggest change this quarter, with Chinese users dishing out more in total, not just in games, was tripled spending in entertainment iQiyi, Tencent Video, Youku , and Social Networking QQ, Momo–China s Tinder, and Inke, a popular live-streaming platform .The days when companies and investors eyed the Chinese market warily, knowing how users are notoriously price sensitive and are willing to take painstaking measures to find a costless alternative, are behind us.That era was put to an end with the rise of paid memberships for quality video content around 2014, which users eagerly lapped up.Today, more and more companies are seeking to monetize through paid services and content, charging membership for everything from faster downloads, membership to watch live football games, to virtual currency for doling out virtual yachts and Ferraris  to their favorite plastic-enhanced cyber stars.China s new leading position in iOS app spending echoes the buzzword consumption upgrade , which essentially means that the rising middle class and the younger generation, as they come of age, are willing to splurge a little, choosing quality, uniqueness and convenience over price.As App Annie puts it, If China wasn t a key priority in your app strategy, it should be now , and prescribes a tailored go-to-market strategy that goes beyond translation to penetrate into China.But as China marches to the front of the check-out line on iOs stores, however the Android app market is a completely different story- a fragmented market of more than 200 independent stores are opted over Google Play, which isn t completely disabled in China, but a series of hurdles from rooting your phone to restoring initial settings, Google Play is literally inaccessible without advice from forums video walk-throughs.
The 10 Japanese movies introduced to cinemas in China this year are expected to earn more than RMB 500 million USD 74 million , according to ACGx, a platfom specializing in animation, comics, and games that is run by search engine giant Baidu.Japanese movies are thriving in ChinaAs of Wednesday, eight of the 10 Japanese movie scheduled to play in cinemas in China in 2016 have made a total of roughly USD 400 million.Among them are stories about classic characters like Naruto and Doraemon – each of these earned RMB 103 million in China.The remaining two movies yet to be played are One Piece and Your Name.The former is the 13th movie of a popular story that has gained 4.16 billion play hits on video-streaming app iQIYI.The latter is a mega-hit by Makoto Shinkai that won a top animation award, and topped the Japanese box office list for nine consecutive weeks.Left: One Piece right: Your NameConsidering that a Weibo post announcing the release date of Your Name in China was forwarded 96,000 times, the 10 Japanese movies are expected to easily earn a total of RMB 500 million and beyond in China this year.Names, not storylines, bring in moviegoersA look at the 10 Japanese movies introduced to China this year shows that they are mostly animations.Additionally, seven of them are the movie versions of classic stories that those born in the 1980s and 1990s grew up with.With fans accumulated over years and even decades, prominent series can perform well in sales, even when the movie content itself is far from satisfactory.Take Detective Conan as an example.The story of this intelligent teenage detective trapped in a boy s body has many fans in both Japan and China.
The Chinese smartphone market tends to be very saturated these days.Most of the largest Chinese companies like Xiaomi, Meizu and Oppo are now considered mainstream, and even smaller ones like Vivo and LeEco are slowly becoming bigger deals.With that, it s nice to see there are still companies that are willing to make new devices and enter the competitive Chinese smartphone market.Enter the iQIYI MiGe M9, a new device from what is basically the Youtube of China.iQIYI MiGe M9: Specifications5.5-inch Full HD IPS display2.15GHz Qualcomm Snapdragon 820 with Adreno 505 GPU4GB RAM64GB internal storage16MP rear-facing camera with LED flash8MP front camera3100mAh battery with fast chargingAndroid 6.0 Marshmallow 4G VoLTE, WiFi 802.11 ac 2.4 GHz 5 GHz , Bluetooth 4.2, GPSHifi AudioiQIYI MiGe M9: FeaturesIn terms of design, the M9 follows the schools of Vivo and Oppo, which in turn follow the Apple s design philosophies perhaps a bit too much.As a result, the M9 is yet another generic look device in the ocean of iPhone-looking devices.Unfortunately, the similarities don t end there.The M9 comes in two colors, Champagne Gold and Rose Gold.The display on the X9 is a 5.5-inch 1080p IPS screen.
HONG KONG—Chinese internet giant Baidu Inc. is planning an initial public offering of its video-streaming site iQiyi.com that could value the unit at up to $5 billion, according to people familiar with the matter.Baidu is considering listing iQiyi in either Hong Kong or the U.S. next year, the people said.The company is planning to issue a convertible bond or similar instrument to raise funds from investors before the IPO, the people said, although the size and timing of that fundraising wasn t clear.iQiyi said at its annual marketing conference in Shanghai in October that it planned to invest as much as 10 billion yuan $1.4 billion to buy and produce content in the coming year.The plans come after an aborted attempt by the Chinese search giant s chief executive Robin Li to buy the unit earlier this year for $2.3 billion.While Baidu s shareholders have pushed the search giant s management to improve the profitability of its video and on-demand units, many considered Mr. Li s bid a low-ball offer.
BATX – a term commonly used in the tech industry for Baidu, Alibaba, Tencent, and X for rising unicorn tech companies such as Xiaomi and Didi Chuxing – have blown the world s tech sector away with its remarkable achievements and sheer record-breaking numbers.Here are some highlights of BATX s notable achievements and setbacks in the past year:BaiduBaidu, a web services company well known for China s Google-equivalent search engine, has been pushing to become a leader in artificial intelligence AI .The company has already been using AI in machine learning to forecast food delivery times for its Baidu Takeout Delivery and new consumer apps like Baidu s Melody assistant, according to a Huffington Post interview with its director at Baidu Silicon Valley AI Lab.Despite a drop in revenue in the third quarter following regulatory pressure on paid advertisements after a death of a college student who found therapy for his cancer on Baidu, Baidu is back on track with plans for a US$1 billion initial public offering IPO of its video-streaming site iQiyi next year.AlibabaIt is no doubt that 2016 has been a good year for Alibaba.The well-known China tech giant made international headlines with its new sales record of US$17.8 billion RMB$120.7 billion during its one-day online shopping festival Singles Day, which is almost three times more than the combined total sales of Black Friday and Cyber Monday s US$6.79 billion.Alibaba has also revolutionized online shopping experience with the use of VR cardboard virtual reality headsets for 360 degree view of sale products and AR Catch the Tmall Cat gives consumers the chance to win discount coupons by capturing the cat in seven shopping malls across five China cities in the weeks leading up to Singles Day.On the investment front, Alibaba spent several billion dollars in USD acquiring huge stakes in several investments across the food delivery, AR, ride-hailing, ecommerce, several other industries.Koubei, its on-demand delivery services arm, is close to securing US$1.2 billion in funding for expansion.Unfortunately, Alibaba s online shopping platform Taobao is back on the U.S. Trade Representative s blacklist following complaints of selling counterfeit and pirated goods on Taobao.
China s 2016 box office fell well short of the expectations with growth a mere 3.7% from 2015, the first time in more than a decade that the growth rate slumped below 25%.Domestic films actually declined by 2% year-over-year in box office gross sales.In sharp contrast, the market for Chinese online films , feature-length motion pictures for online release, saw explosive growth in 2016 in terms of both output and revenue.More than 2500 such online films, or 网络大电影 also known colloquially as 网大 in Chinese, were published on the major seven Chinese on-demand video streaming platforms in 2016, up 260% from the previous year, according to EntGroup, a local entertainment market research firm.Sohu Video, Youku-Tudou and Tencent Video were ranked second, third and fourth, respectively.Sources: EntGroup, iQIYI & BoxofficecnMost online films are on the revenue sharing programs of video streaming sites .Total Chinese online video users reached 545 million as of the end of 2016, according to China Internet Network Information Center CNNIC .Source: EntGroupOf the total iQIYI subscribers who watched online films, 49% were aged 19 to 24 and 38% aged 25 to 30, with 70% being male, as disclosed by Dou Lili, general manager at the Internet Film Center of iQIYI at an event in April 2016.Still at an Early StageChina s online film industry got started in 2013, and almost all of the existing online films are produced by local production companies or online video sites.iQIYI started publishing films on its website after finding that more than 600 films are made each year, but only around 300 of them make it to movie theaters.Many talented filmmakers don t have an opportunity to produce movies , Yang Xianghua, Senior Vice President of iQIYI, said in an interview with World Intellectual Property Organization WIPO .Unlike theaters, there s technically no limits on the number of films online video sites can publish, and Chinese video sites are happy to add those films whose prices haven t been driven as high as the average of online-published drama serials.The much lower entry barrier as a result and the promise of revenue sharing have attracted hundreds of local companies to produce and distribute online films.iQIYI established an Internet Film Center in 2015, aiming to produce about 20 online-only films in-house per year, according to Mr. Yang.Most of the existing online films are poorly budgeted.
Chinese video streaming market leader iQiyi, a subsidiary of internet search giant Baidu, has raised US$1.5 billion from its issue of convertible notes to a group of investors.Nasdaq-listed Baidu led the fund-raising with its US$300 million investment, iQiyi said on Tuesday.Other major participants in the notes issue include Hillhouse Capital, Boyu Capital, Run Liang Tai Fund, IDG Capital, Everbright-IDG Industrial Fund, and Sequoia Capital.Over the past several years Baidu has given great support to iQiyi in terms of both capital and traffic flow, iQiyi founder and chief executive Yu Gong said in a statement.He said the company is focused on becoming a world-class entertainment company, leveraging Baidu s artificial intelligence technology and content ecosystem .Proceeds from the convertible notes issue are expected to be used for upgrading iQiyi s intellectual property ecosystem and accelerate IP-related businesses, such as subscriptions to its services.
Chinese travel site Qunar is all set to delist from the NASDAQ after it completed its sale to private equity firm Ocean Management.The deal was first announced last October and today it went through having gained shareholder approval earlier this week.The transaction values Qunar, which is backed by Baidu, at around $4.44 billion.The firm raised $167 million from its IPO in November 2013, but now it is one of number of Chinese businesses to shun U.S. public markets.iQiyi, another company backed by Baidu, decided against a rumored U.S. IPO when it recently took financing, while Alibaba s Ant Financial looks set to pick China or Hong Kong for its long-awaited listing.Security firm Qihoo delisted from the NYSE in 2015.
Chinese online TV provider PPTV, a media division of the country’s Suning retail group, announced today an exclusive partnership with China Sports Media to broadcast the 2017 season of the Chinese Football Association Super League (CSL) (in Chinese).The one-year deal, worth RMB 1.35 billion, will allow PPTV to air all of the CSL’s 240 matches on PC and mobile terminals.In 2015, China Sports Media paid RMB 8 billion for rights to produce and transmit signals and sell broadcasting rights related to the CSL games between the 2016 and 2020 seasons.This is yet another extension of PPTV’s foray into sports events broadcasting after it has gained the live rights for matches from Spain’s La Liga (with royalty payments of around RMB 1.8 billion) and Britain’s Premier League (for RMB 5 billion) in China since August 2015.PPTV’s partnership with China Sports Media also marks the knockout of rival LeSports in the contest for the broadcasting rights.This deal is another blow to LeSports, the sports arm of Chinese online video firm LeTV, which has recently lost its rights to broadcast the Asian Football Confederation (AFC) games in China due to a payment default.Earlier at the end of 2016, the sports media firm narrowly escaped being stripped of the broadcasting rights of Britain’s Premier League as it managed to pay a portion of its contract price at the deadline.The Chinese internet giant, which once saw its market value fall to RMB 70 billion this January from a peak of 150 billion RMB (in Chinese), has been struggling with a cash squeeze after years of breakneck expansion.Apart from smartphone and TV manufacturing, LeEco has branched into the film and television production, music, gaming, electric vehicle and sports industry.Its operating income doesn’t come close to its cash burn rates, despite the several funding rounds it secured.In contrast, PPTV has received support from the country’s largest electronic retailer Suning.In 2013 Suning bought a 44% stake, becoming PPTV’s largest shareholder.While leading players including iQiyi, Youku Tudou, Tencent Video and Sohu.com continue to battle for the top spot in the country’s video streaming sector, PPTV hopes to find their niche in live events broadcasting.
While the use of online video has become an influential and effective way for advertisers and publishers to promote their products or services, the practice is also intrusiveness and lacks compelling features.The integration of artificial intelligence into online advertising is boosting video ad effectiveness while enhancing view experience, local media is reporting (in Chinese).Artificial intelligence is sweeping the technology industry, making waves in everything from unmanned vehicles to online advertising.This new advertising model will be a blessing for video-streaming websites in China, which have slid into huge losses in recent years despite enjoying robust growth in terms of average daily viewers, video views and watch time.Losses (in Chinese) even widened for some big Chinese video streaming firms.Chinese search giant Baidu’s streaming video unit iQiyi incurred a loss of US$ 398 million last year, while e-commerce powerhouse Alibaba’s video streaming service Youku Tudou, which has yet to publish its 2016 annual results, saw a net loss of around US$ 68.5 million in Q3 2106 alone.The new advertising mode may provide a viable solution for both publishers and video content providers to monetize online video.Take Taiwan-based AI startup Viscovery as an example.Founded in 2013, the AI startup focuses on image recognition and video content analysis.The company launched the “Video Discovery Service” (VDS) integrating computer vision and deep learning technology, able to recognize seven major categories in videos: face, image, text, audio, motion, object, and scene (FITAMOS).The innovative VDS service, which can fulfill more than 20 million auto-tagging requests on the back of a database of over 10M commercial product SKUs, can help advertisers capture every frame of business opportunity and place the ad accurately to the second.