An informed source revealed yesterday that 56.com, the Chinese online video-sharing website that has been closed for a month, will shift from being a pure video website and turn towards producing widgets. Specific details of the planned transformation are not yet clear. There were several factors behind 56.com's recent closure, including: problems obtaining an Online Audio-Visual Broadcasting License, fierce competition in the industry, and the need for a significant infusion of new capital.
Editor's Note: A marketing spokesperson from 56.com recently told Sina Tech that 56.com will return to normal operations this month and will also shortly release an announcement about 56.com's future strategy. The spokesperson refused to confirm or deny the rumor that 56.com was about to drop out of the online video industry.