youku

A significant milestone in the company's history was its merger with chief rival Tudou in March 2012, a stock-for-stock transaction that created a new entity named Youku Tudou Inc. This move consolidated the market, aiming to reduce operational costs, particularly for content licensing. By 2014, the merged company boasted over 500 million monthly active users. In a strategic move to bolster its digital entertainment offerings, Alibaba Group acquired the company in a deal completed in 2016, taking Youku Tudou private. Under Alibaba, Youku has shifted its focus from user-generated content to professionally produced videos, including licensed TV shows, movies, and original productions, positioning itself more like Hulu or Netflix.

Youku's business model is multi-faceted, generating revenue primarily through advertising and subscriptions. Advertisers can utilize various formats like pre-roll and mid-roll ads to reach a broad audience, a model similar to traditional television. The platform also offers a premium subscription service that provides users with an ad-free experience and access to exclusive content. Additionally, Youku generates income from licensing content to other platforms and has a revenue-sharing program for qualified content creators. The platform serves a wide range of clients, from individual viewers and content creators to major brands and advertisers looking to tap into the vast Chinese market. Its content library is extensive, featuring thousands of movie titles, TV series, and variety shows, accessible across multiple devices.