A flood of new international content entering their feeds would soon benefit Chinese social media users.
In order to bring selected content, primarily from the United States and Russia, into the Chinese market, there has recently been a number of tie-ups between local social media platforms and digital content distributor network Yoola. These agreements would help flood the Chines social media users with western content.
In addition to social media platforms like Youku-Tudou, Toutiao, Miapoi, Kuaishou, Bilibili, Meipai, AcFun, and Aipai, social media giants Weibo and Tedncent are also among the local partners.
This is in sharp contrast to the long struggle to gain footing in the Chinese market that has been the fate of Western internet companies, including Facebook and Google. And this is the backdrop against which these new tie-ups were made. Both facebook and Google are currently blocked in the mainland.
Working with YouTube channels to offer audience development, content programming and monetizing services, among others, Yoola is one of YouTube’s multi-channel networks (MCN), third-party service providers. Driving over 7 billion monthly views with more than 650 million subscribers across the network, the company currently manages more than 72,000 channels.
Yoola is aiming to help influencers gain traction in China — and, in doing so, bridging international content gaps through a localization process, which includes translating, editing, operating and promoting the content on different networks in China.
“People think that content that works well in the West can succeed in China, but that’s not true. There is still a very big language and cultural barrier that we help creators overcome,” Eyal Baumel, CEO of Yoola, told CNBC’s “Squawk Box.”
There are high barriers-to-entry into the Chinese market, Baumel said, “not just in terms of localizing content, but also from understanding and adjusting to Chinese market preferences.”
“Here in the U.S. and in the West, more than 95 percent of the majority of revenue comes from video advertisements. In China, it’s maybe 10 percent, usually less,” he said while citing the differences in monetizing as a key impediment for Western access.
Baurnel said that instead, digital gifting, brand integrations and e-commerce drive revenue streams.
Yoola is also using its own production studio to explore opportunities in the Chinese live streaming market beyond the distribution of content. “There’s a huge opportunity that’s not going to slow down,” said Baumel. “We are big believers.”
(Adapted from CNBC)