China's 400 million or so Internet users will soon be able to enjoy a new online video service. Baidu, the country's top search provider, has announced plans to create a new video-on-demand website.
With the domain name Qiyi.com registered, Providence Equity Partners (a global private equity investment firm that put $100 million into the Hulu pot) will invest $50 million to develop the advertising-supported online video business -- with Baidu retaining majority ownership.
Rather than user-generated content, Qiyi.com will provide "premium licensed content" OK'd by regulators for the "lawful distribution of professionally produced media and entertainment content on the Internet," according to the announcement.
Baidu has previously offered video search, as well as the Baidu Internet TV Channel, where Internet users can download movies and TV programs. It is also said to have some strategic investment in PPLive, a Chinese P2P site.