- While several Chinese Internet stocks are seeing selling pressure, Youku (NYSE:YOKU) .is easily the biggest decliner Volume (2.9M shares) has already topped a 3-month average of 2.49M.
- Yesterday afternoon, Reuters highlighted new government rules requiring regulators to approve foreign video content before it's aired, and restricting the ratio of foreign to domestic content on streaming sites to 30%.
- Marbridge Consulting's Mark Natkin: "The regulators say 'we can't permit this particular show', but in some cases the real reason is they want to protect and foster the growth of the domestic industry." Shortly after authorities required streaming sites to take down The Big Bang Theory (along with other U.S. shows) in May, state-owned CCTV began airing it.
- Reuters notes Youku has 1,451 TV seasons for U.S., U.K., and Korean shows, far above Sohu's 509 and Tencent's 471. On its Q3 CC (transcript), Youku said it plans to nearly double its spending on original content next year, and will also grow its content investments in other segments.