Leading Chinese Internet search provider Baidu is to establish a new company to provide licensed online video content to Chinese users.
In a statement, the Beijing-based firm said it will work closely with content providers to offer copyrighted premium content including movies, TV series, sport and other content through an ad-funded model.
Yu Gong, formerly president and COO of China Mobile's 12580 business, has been appointed chief executive officer of the new company.
"As China's Internet industry evolves, we have seen increasing demand for high-quality video content on our search platform," said Xuyang Ren, Baidu's VP of marketing and business development, in a statement. "By establishing this new company, we will be able to better serve our users and customers with superior content and focused resources. I am very excited to work with Mr. Gong, who has strong experience in the internet industry in China, to grow our new company into a leader in the field through product innovation and a robust network of partnerships with leading content providers in China and globally."
Gong added: "Online video is a rapidly growing sector in China and I believe Baidu's search platform will provide a solid foundation for the new company to address the increasing demand for premium content. I am very excited to embark on this new venture."