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Baidu agrees to filter pirated content, Youku rallies

  • After receiving a $42K fine from China's National Copyright Administration for providing access to pirated material, Baidu (BIDU +1.5%) has agreed to filter pirated movies and TV shows from its services.
  • Chinese online video leader Youku (YOKU +4.3%), which has invested heavily on building a library of legally-distributed content (content costs totaled 56% of the company's Q3 revenue), is up sharply.
  • Baidu's widely-used video player has turned into a top source for pirated material. Youku, along with several peers and copyright agencies, sued Baidu in November for allegedly enabling piracy through a variety of products/services.
  • At the same time, Baidu's PPS and iQiyi sites have joined rivals in licensing and distributing professional content.
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