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Tudou, Inc. (simplified Chinese: 土豆网; traditional Chinese: 土豆網; pinyin: Tǔdòu Wǎng; lit. 'Potato Net') is a Chinese video-sharing website headquartered in Shanghai, China, where users can upload, view and share video clips. Tudou went live on April 15, 2005 and by September 2007 served over 55 million videos each day.[1]

Key Information

In 2007 Tudou was one of the world's largest bandwidth users, moving more than 1 Petabyte per day to 7 million users. YouTube serves a larger number of videos per day, but the average Tudou video is longer in duration, meaning the total number of minutes of video being streamed daily from Tudou is significantly larger - about 15 billion minutes vs. 3 billion for YouTube.[1]

The Shanghai-based service uses Adobe Flash technology to publish more than 50,000 new videos each day, including amateur content such as videoblogging and original videos, movie and TV clips, and music videos. Unregistered users can watch videos on the site, while registered users are permitted to upload an unlimited number of videos, using on-line and Windows-based upload tools.[2]

On March 12, 2012, it was announced that Youku reached an agreement to acquire Tudou in a stock-for-stock transaction, with the new company being named Youku Tudou Inc.[3]

History

[edit]

Tudou was founded by Gary Wang and Dutchman Marc van der Chijs, whom Wang met while at Bertelsmann Media Group in China. The name Tudou is Chinese Pinyin (Romanized Chinese) for Potato. It was previously known as Toodou.com, and changed its domain name to Tudou.com in August 2006 when that domain became available. According to CEO Wang, the name comes from the English idiom "couch potato". He stated that his goal was to move couch potatoes from the television screen to the computer screen.[4]

Prior to Tudou, Wang lived in the United States and returned to China to work for multi-national companies. Tudou was originally conceptualized as a video blogging company and the site launched on April 15, 2005, in its current format, several months after YouTube.

Like many technology startups, Tudou was started on a small budget with a raw technology team. It was initially self-financed at about $100,000, then in 2005 raised a $500,000 seed round. Its first major funding round was in 2006 for $8.5 million from IDG China, GGV Capital (formerly Granite Global Ventures), and JAFCO Asia. Tudou's second funding was in early 2007 for $19 million and was led by Boston-based General Catalyst Partners and Shanghai-based Capital Today, with other existing investors participating.[1] The fourth round of funding was on April 28, 2008, for $57 million from existing investors IDG Technology Venture Investment (IDGVC), Granite Global Ventures and General Catalyst Partners, and also included a member of the Rockefeller family.[5] The most recent funding was announced on August 5, 2010 for $50 million from the Temasek Holdings and existing investors.[6]

Rapid growth

[edit]

During the summer of 2007, Nielsen/NetRatings reported that Tudou was one of the fastest growing websites on the Web, growing from 131 million to 360 million video clips per week in just three months. According to a July 16, 2007, survey, 55 million video clips are viewed daily on Tudou, with an additional 20,000 new videos uploaded every 24 hours.[7] Neilsen's measurements indicate the website averages nearly 40 million visitors per month.[8]

According to Chinese tracking service iResearch, as of the mid-2007, Tudou has over 50% of the Chinese online video market.[9] iResearch reported Tudou reached 95 million monthly unique visitors as of June 2009, and 170 million as of June 2010.

Funding

[edit]

Tudou completed its financial fund series A to E between year 2005 to 2010 in November 2005, April 2006, April 2007, April 2008, and August 2010 respectively. A total of US$135 million was raised from a roster of venture capital organizations including IDG Ventures China, Jafco Asia, GGV Capital, General Catalyst Partners, Capital Today, KTB, JAIC, Cyber Agent, Venrock, Crescent Point, and Temasek Holdings.

Recent events

[edit]

In July 2007, Tudou introduced one of the world's first large-scale video advertising systems for video sites, several months ahead of YouTube.[9] In late September 2007, Intel and Tudou announced a partnership to explore wireless video sharing technologies and video applications for mobile devices. Tudou also agreed to increase its use of Intel CPUs in its rapidly growing video encoder server farms. Intel will also promote its products through the Tudou advertising system.[10]

In December 2007, Tudou introduced videos in the H.264 format, providing higher quality and standards-based video.[11]

In the aftermath of the 2008 Sichuan earthquake on May 12, the service of the website was suspended until May 21 due to the period of national mourning.

On September 10, 2008, Tudou received its license[12] from SARFT.

[edit]
[edit]

A portion of Tudou's content comes from commercial sources and is not user-generated. The company says that the Chinese often go to Tudou for TV-like saq-media, instead of using their televisions. Starting 2008 Tudou launched licensed content acquisition and partnership programs aggregating selective premium professional contents. Nevertheless, Tudou still comes under criticism for its disregard of some copyright policies.

Video review

[edit]

Tudou's in-house reviewers watch, approve, and categorize all uploaded videos. The reviewers screen for inappropriate content such as pornography and categorize / tag each video.[13]

Technical notes

[edit]

See also

[edit]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Tudou

View on Grokipedia
from Grokipedia

Tudou (Chinese: 土豆; pinyin: Tǔdǒu) is a Chinese video-sharing website founded on April 15, 2005, that enables users to upload, view, and share video clips, establishing itself as one of the earliest platforms for user-generated content in China. Headquartered in Shanghai, the platform quickly gained popularity among young users seeking to express themselves through short videos, vlogs, and creative storytelling, amassing tens of millions of visitors by the late 2000s. In 2012, Tudou merged with rival Youku in a stock-for-stock transaction to form Youku Tudou Inc., creating China's largest online video site at the time and enhancing its competitive position against international platforms like YouTube. The combined entity was later acquired by Alibaba Group in 2016 for approximately $4 billion, integrating Tudou's operations into Alibaba's broader digital entertainment ecosystem while maintaining its focus on short-form and professional video content.

Founding and Early Operations

Establishment and Initial Platform Features

Tudou was established in 2005 by Gary Wang as China's inaugural online video sharing platform. The site launched with fundamental capabilities allowing users to upload, view, share, rate, and comment on videos over the internet, thereby creating an interactive space for user-generated content. This setup positioned Tudou as a pioneer in democratizing video dissemination in a market previously dominated by state-controlled media outlets. The platform's features emphasized and , ordinary users to contribute and engage with content without requiring advanced technical expertise. By supporting basic video formats and social interaction tools like ratings and comments, Tudou facilitated community-driven curation and discovery, which rapidly attracted early adopters amid China's burgeoning user base. At launch, Tudou operated primarily as a web-based service headquartered in , focusing on user-generated videos rather than professional or licensed programming, distinguishing it from traditional models. This UGC-centric approach aligned with the era's global trend toward participatory media, though Tudou adapted to local bandwidth constraints and content preferences through straightforward upload and playback mechanisms.

User Adoption and Content Ecosystem

Tudou experienced rapid user following its launch on , , as China's pioneering video-sharing platform, which allowed individuals to and share personal videos amid growing penetration. By the first quarter of , the site served approximately 189.6 million monthly users, securing the second position in China's video market according to iResearch . In , Tudou reported 90.1 million users, capturing 16.2% of the domestic video , driven by its user-friendly interface and expansive video exceeding 36 million clips. This growth reflected broader trends in China's expansion, where video consumption surged among urban seeking alternatives to state-controlled . The platform's content initially emphasized (UGC), fostering a of creators who uploaded short-form videos on topics like daily , sketches, and personal vlogs, akin to early dynamics but tailored to Chinese cultural preferences. Tudou's UGC model enabled rapid content proliferation, with users contributing diverse, that built viral through features. By , monthly video views reached 5.2 billion in , marking a 100% year-over-year increase, underscoring the ecosystem's scale and user retention via algorithmic recommendations and social integration. To evolve beyond pure UGC, Tudou introduced UGC 2.0 in May , partnering with original creators and copyrighted content aggregators to form China's largest cross-platform video network, blending amateur uploads with semi-professional productions. This shift supported emerging web-original series and , attracting creators focused on and genres while maintaining UGC as , with over 71.7 million registered users actively participating in uploads by the time of its 2011 IPO filing. The ecosystem's strength lay in its democratized access, though it faced challenges from inconsistent and regulatory over user-submitted .

Growth and Business Development

Rapid User Expansion

Tudou's user base expanded rapidly in the years following its launch as China's pioneering user-generated content (UGC) video-sharing platform, capitalizing on surging domestic penetration and for short-form video amid alternatives. By late , the site had established substantial traction, serving 360 million videos weekly to 28.8 million unique weekly visitors in , a tripling from 11.5 million unique weekly visitors three months prior. Monthly unique visitors reached approximately 50 million by , reflecting early driven by organic uploads and word-of-mouth in a market where broadband access was proliferating. This growth accelerated through the late 2000s, paralleling the broader Chinese online video sector's expansion from 82.2 million users in 2006 to 209 million in 2009. Tudou's monthly unique visitors surged to around 182 million by December 2010, supported by enhancements in content variety and platform usability that attracted diverse demographics, including urban youth seeking entertainment outside state-controlled television. By May 2011, the figure climbed to approximately 200 million monthly unique visitors, quadrupling from the 2007 baseline amid competitive pressures that nonetheless underscored Tudou's market positioning as a leading player.
PeriodMonthly Unique Visitors (millions)Source Notes
200750Bandwidth and filings
2010~182Internal metrics aligned with industry reports
May 2011~Pre-IPO disclosures
2011227 (iResearch) / 300 (internal)Year-end
Registered users also grew briskly, reaching 71.7 million by 2010 and exceeding 90 million by mid-2011, indicating deepening through account-based features like uploads and playlists. Video consumption metrics further evidenced this surge, with monthly views hitting 5.2 billion in 2011, roughly doubling year-over-year and correlating with user retention via viral content trends. Such expansion positioned Tudou as a key aggregator of domestic video , though it faced scalability strains from bandwidth demands in a fragmented regulatory environment.

Funding Rounds and Investor Involvement

Tudou secured early-stage financing in December 2006 with $800,000 from IDG Venture Capital, marking its first external investment round. This was followed shortly by a syndicated second round raising $8.5 million from investors including IDG China, GGV Capital (then Granite Global Ventures), and JAFCO Asia. In July 2007, the company raised $19 million in a Series C round co-led by U.S.-based General Catalyst Partners and Chinese private equity firm Capital Today, with additional participation from GGV Capital, IDG China, JAFCO Asia, KTB Ventures, and Japan Asia Investment Company. The capital supported expansion of technical infrastructure and strengthening of advertising partnerships. Tudou's Series D round in April 2008 brought in $57 million, primarily led by , alongside returning investors such as General Catalyst and , as well as involvement from the office. The final pre-IPO round occurred on August 5, 2010, with $50 million in Series E funding from Singapore state investor . This brought Tudou's cumulative venture funding to approximately $135 million since 2005, enabling investments in content differentiation and studio development amid intensifying competition from platforms like .
DateRound TypeAmount (USD)Key Investors
December 2006Initial/Seed$0.8 millionIDG Venture Capital
Early 2007Syndicated$8.5 millionIDG China, GGV Capital, JAFCO Asia
July 16, 2007Series C$19 millionGeneral Catalyst Partners (co-lead), Capital Today (co-lead), GGV Capital, IDG China, JAFCO Asia, others
April 28, 2008Series D$57 millionIDG Capital (lead), General Catalyst, GGV Capital, Rockefeller family
August 5, 2010Series E$50 millionTemasek Holdings
Recurring investors like IDG Capital, which led or participated across at least three rounds, provided strategic continuity, leveraging their experience in Chinese tech investments to fuel Tudou's scaling of user base and video hosting capabilities. GGV Capital and General Catalyst also maintained involvement, reflecting confidence in Tudou's position as a YouTube analog in China despite regulatory and piracy challenges. No further independent funding rounds occurred after 2010, as Tudou pursued an IPO in 2011 and merged with Youku in 2012.

Government Regulations on Content

The Chinese government has imposed stringent regulations on online video platforms, including Tudou, primarily through the State Administration of Radio, Film, and Television (SARFT), to curb content deemed politically sensitive, pornographic, violent, or threatening to social stability. These measures, rooted in broader internet censorship frameworks like the 2000 Provisions on the Administration of Internet Information Services, escalated with specific rules for audio-visual services effective January 31, 2008, mandating licenses from SARFT and the Ministry of Information Industry for legal operation and requiring platforms to monitor and remove prohibited material proactively. In March 2008, SARFT penalized Tudou alongside other sites for violations such as disseminating illegal content without proper licensing, resulting in temporary shutdowns or operational restrictions for non-compliant platforms; Tudou was specifically cited among those punished for hosting unauthorized . To comply, Tudou implemented mechanisms, including volunteer moderators to potentially problematic videos before they could attract . A notable enforcement action occurred on , , when authorities shut down Tudou's internet operations for one full day as part of a nationwide anti-pornography crackdown targeting video-sharing sites for hosting obscene content, underscoring the government's zero-tolerance approach to moral and ideological impurities in digital media. Such incidents reflected SARFT's dual emphasis on licensing and content pre-review, compelling platforms like Tudou to invest in internal review teams to avoid recurrent penalties. Tudou faced multiple lawsuits from content owners, stemming from unauthorized uploads and streaming of videos on its platform, which initially relied heavily on user-generated and pirated to attract viewers. These disputes intensified as strengthened in the online video sector during the late 2000s and early 2010s, pressuring sites like Tudou to transition toward licensed content. In a case, International sued Tudou in for uploading and distributing episodes of the popular documentary series without authorization, after securing notarized of the infringement. The Shanghai Minhang ruled that Tudou's deliberate upload of the "hot" content constituted infringement of the right of communication to the , as Tudou—a sophisticated operator—had actively disseminated it rather than merely hosting user submissions. Tudou was ordered to pay damages and costs, with the decision serving as a model for handling proactive platform uploads in copyright disputes. The upheld a related ruling in , requiring Tudou to compensate 248,000 yuan (approximately 40,292 USD at the time) for downloads of copyrighted programs, emphasizing Tudou's for facilitating unauthorized access. Film distributor initiated another suit after Tudou streamed the movie online starting November 22, —over two months before its licensed —leading to a January 2014 court order for Tudou to pay 370,000 yuan in damages, reduced from EDKO's 520,000 yuan claim based on assessed losses. Tudou also clashed with rival in , when both companies accused each other of infringing exclusive copyrights on video content, prompting to file legal proceedings amid escalating for premium programming in China's nascent video market. These mutual claims underscored the industry's scramble for licensed but resulted in on resolutions prior to their merger.

Technical Infrastructure

Video Hosting and Format Support

Tudou's video hosting enabled users to , store, and on its servers, facilitating widespread among its growing . The platform initially relied on progressive and streaming delivery optimized for , which was the dominant for video playback during its . Videos were typically transcoded server-side to compatibility and efficient bandwidth usage across varying connections in . A pivotal advancement occurred on December 11, 2007, when Tudou announced support for H.264 video compression standard integrated with Adobe Flash Player 9, marking it as the first user-generated video site to deploy this codec at scale for its approximately 40 million monthly visitors. This upgrade delivered higher video quality, reduced file sizes, and better compression efficiency compared to prior formats, enhancing user experience amid increasing content volume. H.264 adoption addressed limitations of earlier codecs by supporting more efficient encoding for high-definition content while maintaining broad device compatibility through Flash. Prior to widespread H.264 implementation, Tudou primarily encoded hosted videos in the FLV (Flash Video) container format, which bundled video, audio, and metadata for seamless Flash-based playback and was standard for early web video platforms due to its low-latency streaming capabilities. This format supported codecs like Sorenson Spark or On2 VP6 initially, before transitioning to H.264/AVC for superior bitrate efficiency. Upload processes involved automatic transcoding to these playback-optimized formats, though exact input file specifications from users—such as raw AVI or WMV—were handled via server-side conversion to mitigate compatibility issues.

Scalability and Bandwidth Management

As Tudou's user base expanded rapidly after its 2005 launch, the platform faced acute scalability pressures from surging video uploads and streaming demands, with bandwidth costs emerging as a primary operational bottleneck. Early growth strained server infrastructure, prompting strategic partnerships with Chinese telecom giants like China Telecom and China Netcom to secure favorable bandwidth pricing and distribution support. These collaborations enabled Tudou to handle escalating traffic without prohibitive expenses, though monthly bandwidth outlays still climbed to around $1.5 million by 2009 amid competition with rivals like Youku. To address server overload and cost inefficiencies inherent in centralized hosting, Tudou adopted peer-assisted P2P distribution for user-generated content, allowing peers to share video segments directly and thereby offloading up to significant portions of from core servers. This hybrid model reduced reliance on proprietary bandwidth, with measurement studies confirming its effectiveness in scaling delivery for popular videos by exploiting user proximity and idle upload capacities. P2P implementation via HTTP-based protocols further minimized latency while adapting to variable peer participation, though it required ongoing optimization to counter free-rider issues where some users consumed without contributing. These measures sustained Tudou's operations through peak growth phases, but persistent bandwidth intensity—driven by uncompressed formats and high concurrency—highlighted limits of P2P alone, influencing later shifts toward licensed content and efficiency-focused encoding post-merger. Overall, Tudou's bandwidth prioritized cost-sharing via telecom ties and decentralized delivery over pure scaling, reflecting pragmatic adaptations to China's nascent high-traffic video .

Merger and Post-Merger Evolution

Negotiations and Merger with Youku

In early , Youku Inc. and Tudou Holdings Ltd., long-standing in China's competitive video sector, initiated discussions amid intensifying market pressures including rising content acquisition costs and bandwidth expenses. The two platforms, which together commanded a significant share of user but operated at a loss, sought consolidation to enhance scale and bargaining power with content providers. On March 11, , they signed a definitive merger agreement, marking the culmination of these talks in a stock-for-stock transaction where Youku would acquire Tudou. The deal valued Tudou at approximately $1 billion, with an exchange ratio stipulating that each ordinary share of Tudou (Class A or B) would convert to 7.177 shares of Youku, and each American Depositary Share (ADS) of Tudou to 0.239 ADS of Youku. This structure reflected Youku's larger market capitalization—about six times Tudou's at the time—and positioned the combined entity, Youku Tudou Inc., to control nearly half of China's online video market. Post-merger, Tudou was to retain its brand and platform as a subsidiary, aiming to leverage complementary strengths in user-generated content and professional programming. Shareholder approvals followed in August , with the merger completing on August 23, after which Tudou became a wholly owned of Youku and the company delisted Tudou's shares. The transaction faced no major regulatory hurdles in , despite prior industry over content licensing, and was viewed as a strategic response to anticipated policy shifts favoring licensed video distribution. Youku shares initially surged post-announcement, while Tudou's rose sharply before stabilizing, underscoring investor optimism for cost synergies estimated to reduce operating losses.

Integration into Youku Tudou and Alibaba Acquisition

Following the completion of the merger on August 23, 2012, Tudou was integrated as a wholly owned subsidiary of Youku, with the combined entity operating under the name Youku Tudou Inc. The integration preserved Tudou's distinct identity and platform, allowing it to continue targeting a younger, more niche audience focused on and social features, while Youku emphasized broader, general-audience programming. Operational synergies included cross-platform user account connectivity, enabling seamless login across Youku.com and Tudou.com, and projected annual cost savings of $50–60 million over the subsequent 18 months through shared infrastructure and content licensing efficiencies. Post-merger, Tudou underwent a site redesign incorporating enhanced social tools and original content initiatives to bolster user engagement. Financially, the integration yielded growth for the combined , with Youku Tudou reporting synergistic effects in operations by , though margin pressures arose from consolidating Tudou's lower-margin model. Tudou's Nasdaq listing was delisted, and its resources were gradually aligned with Youku Tudou's unified stack for and recommendation algorithms, reducing while maintaining dual platforms to capture diverse market segments. In May 2014, invested $1.2 billion for a 16.5% stake in Tudou, providing capital for content expansion and upgrades amid intensifying in China's video market. followed by Alibaba's non-binding proposal on , 2015, to all remaining outstanding shares at $26.60 per American Depositary Share (ADS), representing a 35.1% premium over the prior closing price. A definitive merger agreement was signed on November 6, 2015, valuing the transaction at approximately $4.8 billion, with shareholder approval secured in March 2016. The acquisition closed on , , making Youku Tudou a wholly owned of Alibaba and delisting it from the , thereby integrating its video operations into Alibaba's broader , including synergies with and e-commerce-driven content distribution. Victor Koo continued as chairman and CEO, overseeing the platform's shift toward premium licensed content and capabilities under Alibaba's resources. This move strengthened Youku Tudou's position against like by leveraging Alibaba's and for .

Market Impact and Legacy

Influence on Chinese Online Video Sector

Tudou, launched in April 2005 as one of China's earliest video-sharing platforms modeled after YouTube, pioneered user-generated content (UGC) in the domestic online video sector by enabling widespread user uploads and sharing of short clips. This innovation rapidly popularized amateur video production and consumption amid China's burgeoning internet access, with the platform attracting millions of users within its first few years and demonstrating the commercial viability of ad-supported video hosting. By fostering a community-driven ecosystem, Tudou shifted consumer behavior from traditional TV toward on-demand online viewing, catalyzing sector-wide growth as monthly active users across platforms surged from negligible levels in 2005 to hundreds of millions by 2011. The platform's early dominance—reaching approximately 180 million monthly users by mid-2011—intensified , prompting like (launched ) to adopt and refine similar UGC models while investing in bandwidth and to capture . Tudou's initiatives, such as the 2011 Tudou promoting original short and the development of "UGC " for creator tools, elevated amateur production standards and influenced industry norms toward incentivizing user contributions through revenue-sharing experiments. This competitive dynamic accelerated technological advancements in video compression, streaming, and mobile compatibility, laying groundwork for the sector's from piracy-heavy origins to licensed content. Tudou's 2012 merger with Youku, forming with over 43% , underscored its foundational in consolidating the fragmented UGC landscape into oligopolistic structures dominated by survivors amid regulatory pressures and high operational costs. The combined Youku Tudou's subsequent pivot to original and premium content—building on Tudou's UGC base—pressured competitors like iQiyi to escalate investments in exclusives and , contributing to the sector's maturation into a multibillion-yuan industry by the mid-2010s. Despite challenges like copyright disputes that highlighted early platform vulnerabilities, Tudou's legacy endures in shaping China's online video as , with user engagement metrics now exceeding 1 billion daily views across platforms.

Criticisms and Long-Term Viability

Tudou faced persistent criticisms for violations, with rival accusing it in December 2011 of pirating over 60 television dramas that had amassed more than 100 million views since the prior year. In , China's upheld a ruling against Tudou for infringing () s by enabling unauthorized downloads and streaming, ordering payment of 248,000 yuan (approximately $40,292 at the time). These incidents highlighted Tudou's early reliance on user-uploaded content, often unlicensed, which fueled rapid growth but exposed it to legal risks in a market transitioning toward licensed material. Regulatory pressures compounded these issues, as Chinese authorities in March 2008 punished Tudou alongside 61 other video platforms for operating without proper licenses and hosting prohibited content, including , violent , and uploads deemed threats to or social stability. Such enforcement reflected broader state controls on online media, with Tudou surviving temporary closures but under heightened scrutiny that constrained content diversity and operational flexibility. Tudou's drew investor doubt due to escalating bandwidth expenses from surging —mirroring YouTube's early challenges—and a deficient content library, resulting in subdued expansion relative to competitors. This manifested in its August 18, 2011, U.S. IPO, where shares debuted at $17 but closed down 12% at $14.95, signaling skepticism over sustained profitability amid content acquisition costs outpacing ad income. Tudou's long-term viability eroded under competitive fragmentation and financial strain, culminating in its March 12, 2012, all-stock merger with Youku—valued at roughly $1 billion—to consolidate market share approaching 50% and yield $50–60 million in licensing and bandwidth savings over 18 months. The combined Youku Tudou, however, posted widening losses, including RMB 889 million ($143 million) for 2014, driven by premium content investments and mobile ad monetization hurdles. Alibaba's acquisition, announced November 6, 2015, and finalized April 5, 2016, for about $4 billion, injected capital for scale but exposed underlying sector frailties, as evidenced by the entity's sole profitable quarter in early 2015 and Alibaba's $1.2 billion goodwill impairment on Youku in February 2024 amid persistent unprofitability. Tudou's brand subsequently diminished within the integrated platform, underscoring how standalone operations lacked resilience against regulatory demands, piracy crackdowns, and rivals like iQiyi and Tencent Video.

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