50+ thinkers and planners within MSLGROUP share and discuss inspiring projects on corporate citizenship, crowdsourcing and storytelling on the MSLGROUP Insights Network. Every week, we pick up one project and do a deep dive into conversations around it -- on the MSLGROUP Insights Network itself but also on the broader social web -- to distill insights and foresights. We share these insights and foresights with you on our People’s Insights blog and compile the best insights from the network and the blog in the iPad-friendly People’s Lab Quarterly Magazine, as a showcase of our capabilities. This week, our topic is Youku Tudou Inc. . For more, see:http://peopleslab.mslgroup.com

1. crowdsourcing | storytelling | citizenship
People’s Insights: Volume 1, Issue 12
YouKu-Tudou
merger

2. Youku and Tudou
Youku and Tudou are two of the largest online video streaming
companies in China. They enable users to search, view and share video
content that is licensed, user-generated and created in-house.
Source: http://www.youku.com/, http://www.tudou.com/

3. Fierce rivalry
A year ago, they traded charges of copyright infringement. Youku sued
Tudou for $762,000, claiming losses due to Tudou’s 'misuse' of
copyrighted videos. They have also been fighting for market share.
Source: http://www.newsorganizer.com/article/youku-says-it-filed-copyright...,
http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20111219000002&cid=1102

4. Youku buys Tudou
Youku is buying Tudou in an all-stock deal worth more than $1 billion,
creating China's largest video sharing website. Youku shareholders will
own 71.5% of Youku Tudou Inc. Tudou shareholders will get the rest.
Source: http://www.techwireasia.com/2311/much-ado-about-video-youku-buys-tudou/ ,
http://www.facebook.com

5. Competitive market
China's online video market is very competitive. There were rumours that Tudou
would be bought by one of the 10 players. Acquiring a company of its size, would
be a major setback for other firms, hence Youku ensured it beat other firms to the
acquisition.
Source: http://www.filmbiz.asia/news/chinas-online-video-gets-competitive ,
http://www.researchinchina.com/Htmls/Report/2011/6185.html

6. Consolidation to combat issues
Increasing cost of bandwidth and content, a well as the nascent ad
market, have hurt the business. Last year, Tudou and Youku reported
net losses of $81.2 million and $27.2 million respectively.
Source: techcrunch.com , ft.com/intl/cms/s/0/27d4df96-6c2f-11e1-8c9d-
00144feab49a.html#axzz1ppMy95D3

7. Creation of a monopoly
Youku Tudou Inc will be the leading online and mobile video platform in
China. It will benefit from a combined user base, a huge content library
and sturdy bandwidth infrastructure. The merger will help cut costs too.
Source: http://paidcontent.org/ , http://www.wantchinatimes.com/news-subclass-
cnt.aspx?cid=1102&MainCatID=11&id=20120316000060

8. Coming of age
Analysts said that the union is good for the highly competitive industry
that caters to China's 500 million internet users. Social media has also
taken off recently, with over 235 million users in 2011.
Source: http://www.resonancechina.com/2011/07/28/total-chinese-internet-users-to-reach-
551mm-by-2012/ , http://mashable.com/2011/11/30/china-social-networking/

9. Impact on consumers
Consumers are not bothered about the merger other than the changes it
will mean for the user experience. Some think the near-monopoly will
mean more ads, longer loading time and poorer content.
Source: http://www.sinocast.com/readbeatarticle.do?id=72810

10. Impact on TV stations, advertisers
TV stations and producers could initially sell content to both websites,
but not any more. Their revenue will reduce. Even though advertisers
won't spend on both, they will have to spend more on the new platform.
Source: http://www.pcworld.com/ , http://en.campaignchina.com

11. The future
Profits will be hard to come by. Youku Tudou Inc will have to find a way to
minimise losses. It will command 35-40% of China's online video market. Small
players will become attractive acquisition targets for large players to compete.
Source: http://english.caixin.com/, http://peopleslab.mslgroup.com , http://twitter.com

12. More People’s Insights Weekly reports
Every week, we dive into one topic for discussion on the MSLGROUP
Insight’s Network and discuss insights and foresights, in three key
areas: crowdsourcing, storytelling and citizenship.
Crowdsourcing Storytelling: Citizenship
Mahindra Spark the Rise @MarsCuriosity #Kony2012
For more reports, visit: peopleslab.mslgroup.com/peoplesinsights/

13. Read People’s Lab insights and foresights
The People’s Lab team shares the insights and foresights from the
MSLGROUP Insights Network on the People’s Insights weekly blog and
the People’s Insights Quarterly magazine.
MSLGROUP Insights People’s Insights People’s Insights
Network weekly blog Quarterly magazine
50+ MSLGROUP planners We deep dive into Every quarter, we will compile
share and discuss inspiring conversations around one the best insights from the
projects on corporate project -- on the MSLGROUP network and the blog in the
citizenship, crowdsourcing and Insights Network itself but also iPad-friendly magazine, as a
storytelling. on the broader social web -- to showcase of our capabilities.
distill insights and foresights.
For more, visit http://peopleslab.mslgroup.com

14. Coming soon: People’s Insights Annual
Report
In early January 2013 we will publish the People’s Insights Annual
Report, in which we synthesize our insights from throughout 2012 and
provide foresights for business leaders and change-makers for 2013.

15. People’s Lab: Crowdsourcing Insights &
Innovation
People’s Lab is MSLGROUP’s proprietary crowdsourcing platform and
approach that helps organizations tap into people’s insight for
innovation, storytelling and change.
For more, visit http://peopleslab.mslgroup.com

16. For People’s Lab
solutions, contact
pascal.beucler@mslgroup.com