Video-streaming company Youku announced that it acquired the rights to broadcast the upcoming 2018 World Cup in China, becoming one of the major Chinese streaming platforms to broadcast the event.
Youku, part of internet giant Alibaba, said in a statement on Tuesday that the company reached an agreement with China Central Television (CCTV) to become its New Media Official Partner, and acquired the live-broadcast rights to all matches of the next World Cup, which will be held in Russia from June 14 to July 15.
The acquisition will give a big boost to Youku in the very competitive market of online video-streaming in China, where rivals such as Baidu-owned iQiyi, Tencent Video and PPTV are in a constant battle to acquire top-level content. Suning, owner of PPTV, bought last year the rights for three years of the English soccer Premier League for $700 million, underscoring the growing market for sports broadcasts in China.
CCTV, which traditionally has the exclusive broadcast rights for China of every soccer World Cup, this time around broke the precedent set in 2014, when it did not share broadcast rights of the World Cup held in Brazil.
Youku is the second revealed partner of CCTV for the 2018 World Cup. On May 23, Migu, a video-streaming company owned by mobile carrier China Mobile, announced it had acquired from CCTV the online rights to broadcast the 2018 World Cup. Media reports estimated the price for the rights at 1 billion yuan ($155.8 million).
Experts said the move by CCTV makes commercial sense.
"CCTV as a television channel can't make much profit from content, while online platforms can produce many derivative shows and programs. Whatever Youku spent on the World Cup, it will make it back," Jiang Wei, a Beijing-based investor, told the Global Times.
Soccer fans in China will be able to watch all 64 matches live on the Youku website, on its mobile and personal computer apps, and on selected smart TVs and set-top boxes.
It is estimated that the World Cup may be watched by more than 1 billion spectators in China, owing partly to the relatively short time difference between China and Moscow.
That will mean most World Cup matches will be broadcast at 11 pm Beijing time, the golden hour for sports viewing in China. The contract gives Youku rights to broadcast live matches as well as videos of highlights and other related content.
