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    Xiaomi takes Youku stake as it expands into online video

    By GAO YUAN (chinadaily.com.cn) Updated: 2014-11-12 18:19

    Xiaomi takes Youku stake as it expands into online video

    Lei Jun, founder and CEO of China's mobile companyXiaomi, speaks at a launch ceremony of Xiaomi Phone 4, in Beijing, July 22, 2014. [Photo/Agencies] 

    Xiaomi Corp, the Chinese smartphone maker, has formed a partnership with online video platform Youku Tudou Inc to developing Internet video content, the company said on Wednesday.

    The announcement marks Xiaomi's first major move in the media sector since hiring Chen Tong, the founder of China's largest micro-blogging network Sina Weibo by user numbers, earlier this month.

    "The partnership aims to accelerate the development of its multi-screen media and entertainment ecosystem," according to an statement released by Youku.

    Xiaomi will also take a stake in Youku, although the exact details were not disclosed.

    The two will jointly develop content and technology including multi-screen online video services, the statement said, and work together in the production and distribution of online videos and movies.

    A week ago the Beijing-based smartphone vendor revealed plans to create a new cultural and media unit to create self-made videos for Xiaomi devices. Lei Jun, its founder and CEO, has promised to invest $1 billion in the company's video content development business.

    Xiaomi is quickly closing the gap between it and Samsung Electronics Co, China's biggest smartphone seller.

    According to industry research firm Analysys International, Samsung controlled 15.4 percent of the market at the end of the second quarter, with Xiaomi just behind at 12.4 percent.

    Luo Lan, an analyst with Analysys, said: "As Xiaomi consolidates its position in the hardware market it is time for the company to make more investment in other segments to beef up its ecosystem."

     

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