Autonomy, the British search technology specialist, ramped up its effort to dominate China's fast-growing online video search market by signing a partnership with CCTV, China’s state broadcaster.
Under the terms of the deal, the OpenV video search service, jointly owned by Autonomy and a number of Chinese content providers, will gain exclusive access to millions of hours of content from the world's largest Chinese-language television group.
Users are able to search for pieces of video content, ranging from news to drama, by typing in search terms, much in the same way they would in a traditional internet search engine. OpenV, which Autonomy claims is the leading video search service in China with 1 million users a day, aims to make money through advertising and has started to work with agencies including WPP, AC Nielsen and Chang Rong.
Dr Michael Lynch, Autonomy’s chief executive and founder said "In China, this kind of advertising model is relatively young. But if you are bullish on video search and on the prospects for the internet in China, where we are seeing phenomenal take-up of broadband, it's not hard to imagine that this can be a significant earner."
Autonomy has opted to give up equity in OpenV in order to bring Chinese companies on board, a move that has reduced its stake in the venture to 40 per cent from 49 per cent.
The attraction of Chinese cyberspace and its massive pool of potential consumers have long been clear. Dr Charles Zhang, the chief executive of Sohu.com, China's largest web portal, said earlier this year that there could be as many as 200 million Chinese internet users; a figure would place China neck-and-neck with the US.
Autonomy, which is based in Cambridge, has targeted China as the group feels that the West's large internet players, which include Google, Microsoft and Yahoo!, do not enjoy the same "brand momentum" as in their domestic markets. Some western companies have been "arrogant" in assuming they could enter China on their own terms and without Chinese partners.
The OpenV service will be available on a syndicated basis through several Chinese internet sites including CCTV.com, the largest Chinese TV broadband site, QQ, China's largest community site and XinHua net, the official Chinese news agency site. OpenV is offered as both a branded service and as a "white label" technology that groups can integrate into their own sites.
However, the revenue opportunities afforded by OpenV remained unclear. The revenue potential of the joint venture remains very difficult to predict, although it is clearly to be mainly based on an advertising model.
News of the CCTV deal came as Autonomy released a strong set of third-quarter figures, ahead of expectations. The Cambridge-based group said turnover jumped 137 per cent to $60.23 million in the three months to the end of September following last year’s takeover of US rival Verity. Pre-tax profits for the period surged 220 per cent to $15.92 million, also boosted by new contract wins.
Source:佚名