On the user front, the total internet population in China is now 538 million while watching video on internet has become the most used functionality, with the broadest coverage and longest user time spent by Chinese internet users ahead of search according to iResearch. There are strong functionality for users to watch online video in China and we see there's room for our traffic to further grow, driven by the overall increase in Chinese internet users, easier accessibility for users with more internet-enabled devices, improved products and network infrastructure, as well as enriching our content library to fulfill users' increasing demand of video content.
In addition, the coverage of Chinese internet users by our platform is already ranked as one of the top five amongst all the Chinese internet properties according to iResearch. The breadth of our coverage will be further strengthened and the combined traffic lead over our competitors will be further widened with the pending merger with Tudou.
Youku's traffic growth in the second quarter remains solid with user time spent increased 28% as compared to the corresponding period in 2011, according to iResearch. This does not include traffic growth from installed applications on mobile devices, internet café and videos viewed outside Youku URL. According to internal traffic data, our installed iOS and Android applications increased more than two times when compared with the beginning of this year, while our total video views from mobile devices in the second quarter increased about 77% when compared with the first quarter. Counting these traffic from both inside and outside Youku URL, we continue to have solid traffic growth above industry average. Starting into the second half of 2012, we anticipate to see solid traffic growth as we are starting to see the benefits of the pending merger starting to materialize, as well as several high-quality content we purchased last year, are scheduled to be shown on our platform later this year.Read the rest of this transcript for free on seekingalpha.com