Business     

Users will pay to view online films

Shanghai Daily, June 20, 2012

• Users paying to watch films online will generate extra income for film producers and video websites, but the industry also has to resolve the payment problem, panelists said at the 15th Shanghai International Film Festival Tuesday.

  "I have to say, though, many probably don't agree that online films should not be free for a healthy and sustainable business model," Gong Yu, iQuyi's chief executive, told the forum Looking for New Mode: Cinema and New Media, the Second Wedlock.

  iQiyi, an online video subsidiary of Baidu.com Inc, will charge users to watch films online this year.

  Although the copyright cost of an online film broadcast is 10 times above that of an online TV series, the advertising income generated is also on par. This gives online websites an incentive to cash in by charging consumers directly, said Gong.

  Under a deal with Huayi Bros, China Telecom's E-surfing Video Media Co will broadcast online paid films and video clips for the telco's 120 million mobile phone users and 68 million broadband users.

  Liu Chun, chairman of the video department of Sohu.com, said the industry is working with mobile operators like China Mobile and banks to improve the payment system.

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