We’ve written that Sohu is planning to spin off its video biz SohuTV before, and its move on video front is striding forward with an announcement of relocating the headquarter of the new SohuTV subsidiary to Tianjin’s Economic-technological Development Area (TEDA). CEO Deng Ye said, “SohuTV has been growing up fast over the past seven years and now it’s the critical period for us. The relocation is an iconic event marking our progress.”

Since the beginning of Chinese video market consolidation in the first half of this year, the soaring content costs have somehow dropped. Insiders thought that the relocation reflected that video services are still confronting with much burden including high costs and low profits and is in need of a restructure.

Content Costs

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Chelsea Dong

She reads, travels, photographs and writes, with interests in chronicling China tech scene and interpreting how technology disrupts the way people live.