Youku Tudou, a leading multi-screen video entertainment and media company in China has announced its unaudited financial results for the second quarter of 2015. The results are overwhelmingly positive; Youku (akin to American YouTube) has proved to be a landmark digital success story in China. Youku is a large-scale video-sharing website under the Alibaba Group. The website was initially established very similar to YouTube and appeared as a video-sharing platform. However, it has gradually transformed into an online media platform, especially holding a large number of videos and audio copyrights and other special broadcasting rights, and involved in the production of movies and TV series. There is already a big difference in the business direction of YouTube.
Youku Tudou, What is it?
‘Youku’ is China’s leading Internet television platform, enabling users to search, view, and share high-quality video content quickly and easily across multiple devices. The brand is among the most recognized online video brands in China.
Youku is The third-largest Chinese online media platform
From the perspective of the market penetration rate, Tencent Video is still the highest, reaching 44% (penetration rate = the number of users / total market users). Followed by Iqiyi and Youku. Youku is the third-largest online media platform.
Victor Koo, Chairman and Chief Executive Officer of Youku Tudou said; “I am very pleased that once more we delivered accelerated and increasingly diversified top-line growth in the second quarter, driven by robust consumer business development and supported by healthy advertising revenues.”
He further commented that; “revenue diversification through consumer business has been successful and based on progress driven by our business unit reorganizations and management team additions”.
The company has adapted to the ever-changing demands of the Chinese market and remained flexible in terms of its organization and approach, this is key.
Reasons behind Youku’s growth:
Youku’s Increasing advertising revenue
The growth in revenue has been attributed to the increased Youku’s advertising services used by brands. There has been an increase in not only the number of advertisers but also a rising average spend per advertiser.
Revenue diversification to reach more users
This is perhaps the key to Youku’s success. Nearly half of the company advertising revenues have come from mobile, the emerging dominance of mobile as arguably the most important digital platform is a trend Youku has capitalized upon. “We have achieved broad adoption of mobile advertising by domestic and international advertisers alike,” said Victor Koo.
Product development expenses have increased. This increase in expenses evidently delivered results with product development and diversification in mobile, search, social, subscription, and interactive live entertainment services.
China Membership market competition between 3 top video platforms
In the Q1 financial report in 2019, iQiyi’s subscription members have reached 96.8 million, and Tencent Video has 89 million paid members.
Although Youku did not disclose the number of its paid members, Alibaba’s recent first-quarter financial report showed that Alibaba Entertainment’s digital media reached 5.671 billion yuan, a year-on-year increase of 8%. The main source of growth included Youku subscription members.
Youku – on the shoulder of China’s e-commerce giant – Alibaba
To compete with two other rivals, Youku is tied to Alipay, Ele.me, Taopiao, and other Alibaba’s software. Moreover, various Ali’s services are packaged with Youku members, trying to expand user development channels.
Youku: A digital success story
Youku-Tudou is a digital success story in the notoriously competitive and complex digital market in China. They have remained open to change and flexible in terms of their approach. Capitalizing upon emerging trends in mobile engagement, diversifying revenue sources, running a popular advertising service, and increasing the revenue derived from their user subscription service all reflect a company remaining engaged with the Chinese market.
Competition to be continued
It is undeniable that Youku, which is in the first echelon of online video, still has the opportunity to compete with iQiyi and Tencent Video with the support of Ali funds and resources, but there is not much time left for trial and error, especially after iQiyi goes public, Youku will face greater competitive pressure.
If China’s video media platforms market interests you and you want to know more, feel free to contact EAC, a digital marketing agency specialized in China.
Further readings on Chinese Videos Apps
Video Marketing in China in 2027: Platforms, Formats, and Brand Strategy
China’s online video landscape in 2027 is radically different from the Youku Tudou era. Youku (now owned by Alibaba) remains relevant for long-form drama, variety shows, and licensed content, but it is no longer where brands build audiences from scratch. The video marketing battlefield in 2027 spans three distinct formats: short video (Douyin, Kuaishou), mid-form video (Bilibili, Xigua Video), and long-form drama/variety (Youku, iQiyi, Tencent Video). Each format serves different audience behaviors and brand objectives.
Douyin is the undisputed center of brand video marketing. With 750 million daily active users and a commerce layer built directly into the video feed, Douyin is where product discovery, influencer marketing, and direct-to-consumer sales converge in a single environment. A brand video on Douyin can generate awareness, purchase intent, and completed transactions in one 30-second interaction. No other video platform in China — or globally — combines these three functions as effectively.
Bilibili is the platform for Gen Z brand building and tech-savvy audiences. Bilibili’s 340 million monthly active users skew young (18-24), educated, and culturally engaged. The platform is known for detailed product review videos (评测), documentary-style content, and niche interest communities (anime, gaming, science, automotive). For brands in electronics, beauty, outdoor, and premium lifestyle, Bilibili content from credible creators carries exceptionally high purchase influence with audiences that resist traditional advertising.
Long-form video platforms still deliver brand exposure through drama sponsorship. Youku, iQiyi, and Tencent Video collectively produce thousands of hours of original drama and variety show content per year. Brand integrations (植入广告) in popular dramas generate mass exposure — a well-placed product in a top-10 drama reaching 500 million views delivers brand recall that paid advertising cannot match at the same cost per impression. This remains a viable channel for large brands with awareness objectives.
AI-generated video is changing content production economics. ByteDance, Baidu, and several third-party Chinese AI companies launched text-to-video and AI video editing tools in 2025-2026. Brands can now produce localized product videos, animated demonstrations, and voiceover content at a fraction of previous production costs. Early adopters are using AI video tools to produce 5-10 Douyin videos per week from a single product script, a volume that was previously cost-prohibitive.
Technical Tips for Video Marketing in China
- Optimize Douyin video for the first 3 seconds. Douyin’s algorithm uses early swipe-away rate as a primary ranking signal. Videos that lose viewers in the first 3 seconds rank poorly regardless of subsequent quality. Open with the most compelling visual or hook — a before/after result, a surprising fact, or a visually striking product moment. Save the explanation for after you’ve earned the viewer’s attention.
- Use Bilibili for product review seeding with UP主 (creators) in your niche. Bilibili creators (“UP主”) in categories like beauty, tech, food, and outdoor write detailed, long-form review videos that rank in Bilibili search for months or years after publication. One well-produced Bilibili review from a credible creator generates ongoing search traffic long after a Douyin video has cycled out of the feed. Budget for 5-10 Bilibili creator reviews per quarter.
- Repurpose long-form drama sponsorship content for Douyin clips. If you invest in drama placement, contract for the right to clip your brand integration moments for your own Douyin and WeChat channels. A 10-second clip of your product in a popular drama scene can become a high-performing Douyin post that extends the drama sponsorship’s reach beyond the show’s viewership.
- Test AI video tools for high-frequency content production. Tools like Jianying (剪映, ByteDance’s video editor), MiniMax, and Kling AI can generate product demo videos, localized voiceovers, and animated explainers from text prompts. Test these tools for low-priority content like daily Douyin feed posts and reserve human production budgets for hero campaign videos and KOL collaborations.
What Brands Say About Video Marketing in China
“We moved our entire China video budget from iQiyi drama placement to Douyin in 2024. Our CPM dropped 60% and our e-commerce conversion rate tripled because Douyin viewers can buy immediately while watching. Drama sponsorship builds awareness but can’t compete with Douyin’s direct purchase flow.”
Media director, European beauty brand
“A single Bilibili review video from a tech creator with 2 million followers drove 8,000 clicks to our Tmall store in one week. The video is still generating 200-300 clicks per month two years later. Bilibili content has a shelf life that Douyin videos can’t match. We now treat Bilibili as our long-term SEO investment.”
China marketing manager, Japanese electronics brand
FAQ: Real Questions Chinese Consumers Ask About Video Platforms
优酷和爱奇艺哪个更好看？(Which is better for watching content, Youku or iQiyi?) Both platforms offer similar catalogs of Chinese drama, variety shows, and licensed international content. iQiyi (爱奇艺) is often described as China’s Netflix equivalent and has invested heavily in original drama production — its thriller and fantasy dramas have consistently topped Chinese viewership charts. Youku benefits from Alibaba’s ecosystem integration and has strong variety show content. Tencent Video (腾讯视频) is generally considered the third top-tier platform with equally strong original content. Most Chinese streaming subscribers hold memberships on 2-3 platforms because exclusive content is distributed across all three. For international content specifically, all three platforms compete to license global series and films, with availability depending on current licensing agreements.
抖音上的产品视频是真实的还是广告？(Are product videos on Douyin real or advertisements?) Both exist on Douyin, and the platform requires disclosure. Paid brand collaborations must carry a “品牌合作” (brand partnership) or “广告” (advertisement) label visible in the video. However, enforcement varies and some creators are inconsistent about disclosure. A reliable way to identify paid content: check if the creator’s posting frequency suddenly increased for a specific product, look for unusual phrases like “感谢XXX品牌支持本视频” (thanks to XXX brand for supporting this video), or look for a small “广告” tag in the corner of the post. For research purposes, searching your product category on Douyin and filtering by “最多点赞” (most liked) shows you the organic top-performing content, which is typically more representative of real consumer sentiment than paid brand placements.
EAC produces and manages video marketing strategies for international brands across Douyin, Bilibili, Youku, and iQiyi, from content creation and KOL collaboration to paid video advertising and performance tracking.
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