Rob Cox discusses the converging interests of Hollywood and the Chinese government in clamping down on copyright piracy and Youku Tudou's pivotal role.
Lot of news this week in the United States about copyright protection in the area decision. But it's actually got an even more interesting story on in China with a company meaning -- -- which is trying to figure out navigate the copyright. Rules with Internet television. Brought out of the. He felt about that -- so and so the column is is taking a look at this they're a scrappy little company about a foot four billion dollar company there but actually they're kind of like Netflix. YouTube. Comcast all rolled into one and you know if you are interested in understanding what's gonna happen with copter protection particularly as it comes to. You know it refers to Hollywood television movies. Yeah it's really interesting to watch these guys because of abuse notorious issue in China right in terms of just violations of copyright trying to weather -- users but he'd walk on the street you've beaten by. Pirated dvds same ones that get copied and go out there on the streets here. And there was no crack down really by the government the governments engines and an interest that. But last week you had a pretty big. Event happened so. It's comical QB -- of venture capital backed website. Was fine 42 million dollars just almost certainly mean game over for these guys by the elections and market authority. You have a whole new drive by the government central government. That is basic. Pulling together four different departments to try to crackdown on piracy scene he's not acknowledging the rhetoric is. Actually every. -- they can have read that but you actually see this happens it's just 42 million dollar fine to unlock the big deal. And so what you you start to -- is actually converging interests between Hollywood. Which is producing the stuff that doesn't -- -- and look to make some money I would like to make our money out of it gigantic market is going to be is are in the second largest market for box but it can be much bigger. On and the government because the government actually wants mean if you look at the the Chinese Communist Party one of its operatives to create cult that culture created. It has sort of a soft power so what was the models what are they trying to do it's that combination so there's advertising's big part ego and you watch clips. And as appetizing before and after a candidate good capital sides. What about Bob -- about the -- 1718%. Stake in the company -- -- and have a huge -- while and Internet platform it's just be on the area. And then the other part to buy you can buy individual movies just like you can't on YouTube. Aunt or you can struggles sort of revenue sources of -- but the point is all of them. Basically they're requiring Chinese consumers to get had been chewing it to the notion that they have to pay for content. And that is why it's in the interest sort of Hollywood so -- get the backing from the studios haven't been doing deals and all the studios now that you're not making any money out of their content costs in the first quarter were 52 million dollars this is an investment of behavioral change. That's exactly what it is but again that the interest -- part of that government. Needs there to be flourishing market for contact in China so that there are you know Chinese producers directors actors can also pretty stuff that. Might be in the long term as the Chinese Communist Party. You know that the issue of course is whether that contents can be it's tough for people wanna watch. You know yet another sort of you know fuel -- of drama for from -- -- dynasty rent is not necessarily going to be stuff that's commercially exciting. And there are so many sent in like you who has 300 people are just deployed censoring. Stuff right right that the content watchable but that anywhere suffered a great store -- you about it. And be back with more breaking news next week.