A source within Tencent (0700.HK) claims that after extended preparation, the Chinese Internet firm is prepared to launch its own online video website next month. Speculation suggests that Tencent has made tremendous investments toward purchasing copyrights, with the intent being to follow the Hulu.com model. This, however, has yet to be officially confirmed.
During the company's recent Q4 2010 earnings call, Tencent president Martin Lau said that although Tencent currently offers video with its QQLive video player, the project began before an appropriate business model had been established, and thus the company adopted a cautious strategy. Now, however, a profitable business model appears possible given the many advertising clients wishing to invest in video. Lau added that as a result, Tencent has greatly expanded efforts to purchase content, but it will still be a matter of time before video turns profitable.