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56.com Has Breakeven for Two Quarters, IPO Within Two Years

By on December 18, 2010

Stimulated by Youku and Tudou’s IPO-dream coming true, Ms. Zhang Juan, founder of 56.com, the Guangzhou-based third largest video-sharing site in China finally said to the media, the company is planning to be listed within next 2 years. And Ms. Zhang also said that the company has breakeven in past two quarters.

Launched in April 2005, 56.com now has over 60million registered users,  over 120million average daily PV, 42 millions average daily unique visitors and total video play times have reached 1billions.

Unlike Youku which follows Hulu+Netflix model, Ms. Zhang emphasized that 56.com wants to be the Chinese YouTube focus on user generated content (UGC). ‘We believe the essence of Internet is to share and everyone can be engaged’ Zhang said, ‘Hulu’s model can work in states where the copyright market is much more mature. But in China, the copyright market is not well regulated at all, companies are burning too much money on it.’

Focusing on users’ interactivity and UGC, 56 does differentiate itself from other video sites. Comparing the main page of three sites, Youku, Tudou and 56, you can easily tell the difference. On Youku, Tudou, the top navigation menu are Movie, Music, TV Programs and Video, but on 56, you see the menus like Video, User Homepage, Album and Game. Furthermore, 56′s entertainment-centric video content also attracts millions of young people which are favorite target audience for brands and advertisers.

Till today, 56 only raised $30million fund which sounds quite impressive. So are we expecting the first profitable Chinese video site being listed in near future?


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  3. Chinese Video Sites, Burning To The IPO, With Hope
  4. Chinese Online Video Sharing, Where Is The Way Out?
  5. 30%-50% Traffic To Existing Chinese Video Sites Is From Baidu, CEO of Baidu's Qiyi Said.
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About Gang Lu

Gang Lu - Founder & Chief Editor of TechNode. Independent Asia/China Internet business observer and adviser, known speaker and tech blogger, open concept/technology evangelist and entrepreneur. Dr. Lu is also the co-founder of OpenWeb.Asia Workgroup and co-founder of kuukie.com. Dr. Lu got his BSc from EastChina Normal University and has MSc and PhD in wireless communications from the University of Sheffield, UK.