"You cannot find any lengthy film or TV series at Yoqoo," says Koo. "We offer only short video clips lasting 30 seconds to 20 minutes."

The rapid growth of digital camcorders and mobile phones capable of short video recording has made uploading video clips a reality. And the uptake of broadband Internet in China also accelerated the growth of video websites in China, notes Koo.

China had 64.3 million broadband Internet users by the end of last year, according to the quasi-government organization China Internet Network Information Centre (CNNIC).

Shanghai-based research firm iResearch forecast the number to grow at a compound average growth rate (CAGR) of 26.5 per cent between 2006 and 2010. By 2010, it is expected to hit 200 million thanks to the rapid growth of broadband technologies and the decline of charging for Internet access.

"It would have been impossible for us to launch a video site two years ago. At that time Internet users would rather watch TV than going to our websites (at a time when Internet access was much slower)," says Koo.

"The rapid growth of bandwidth of Internet in China, which enables smoother video streaming, will make video websites more wooing."

Business model

For now, Yoqoo is not focusing on generating revenue through its video offerings. The priority, according to Koo, is to expand subscription base and diversify ways to woo users.

"We are now focusing on offering users a better experience. We are exploring various ways to generate revenues from the video boom."

Currently Yoqoo only allows users to watch videos online and downloads are prohibited. But users can send their friends a Web link or a text message to recommend their favourite video clips.

Koo now has put a big bet on the next generation mobile telephony, which would offer much higher downloading speed.

"The convergence of broadband Internet, 3G (third generation) mobile technology and traditional TV networks will bring us a big business opportunity. In the past when we talked about Internet, it was about text and pictures. Now it's about audio and videos."

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