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Need a new registration confirmation email? Click here's CEO Discusses Q2 2012 Results - Earnings Call Transcript

Now let me discuss our online video business in more detail. We remain optimistic about the online video industry. First, in China online video is already a top Internet application with over 350 million users. We believe brand advertisers will continue to allocate more advertising dollars to this segment.

Second, this was related with the significant decline in the market prices of online video content, which would ease the industry’s content cost pressure.

One of our competitive advantages is our compelling content offering. In the second quarter, Sohu Video continued to focus on giving comprehensive, interactive platform with a rich selection of content for users. On the purchased content side, hit TV series there is (inaudible) reached a record of 355 million video views in the first 30 days of broadcast, setting a new record for single-TV drama on our platform.

On the original content side, our reality show, (inaudible) co-produced with Hunan Satellite TV attracted a significant amount of users’ engagement on our site. The final seven episodes of the show are broadcasted during primetime on Hunan TV. Our high quality programs are clearly enhancing our users’ stickiness, which was evidenced by a number of user and usage statistics, for example, according to comScore, in Q1 2012, the time spent per visitor on Sohu Video increased by about 26% from the previous quarter.

During the second quarter, we also began to get prepared for the 2013 content. We plan to broadcast at least one to two hit movie, hit TV drama each month. We will strengthen our cooperation with professional studios and TV stations for Sohu original production. And last, we will enhance our website functionalities and the ease of use to encourage users to upload and to share their self-produced video clips.

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