Booming Demand for TV on the Internet in China

The New York Times reports on the online video market in China:

While Internet TV in the United States is in a nascent state, in China, it is already drawing a huge share of the world’s biggest Internet market, where an estimated 400 million people are on the Web. A market research firm based in Shanghai, iResearch, says advertising on Internet TV and Web video sites is expected to reach $346 million this year, up from $83 million in 2008.

Big video sites like Youku, Tudou, KU6 and PPTV are spending aggressively to license content, produce original programming and buy the bandwidth necessary to store and broadcast content.

On Thursday, when many of the industry’s leaders gathered at the China Digital Media Summit in Shanghai, the future of video Web sites was one of the hottest topics.

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