Why Are China Video Sites Buying More Copyrighted Content?

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Why am I such a suspicious bastard? Could be I’m just cranky from this flu I’m still trying to kick (the doctors have narrowed down the origin as either 1) an inter-species crossover from a rare group of penguins that lives in the Brazilian rain forest, or 2) a Cardassian bioweapon).† Either way, this news makes me think that these companies are simply looking for a way to buy off the content industry and get the government IP cops off their backs. I report, you decide.

Ku6.com, China’s third largest video website, plans to invest over 200 million yuan ($29.29 million) next year to buy copyrighted content and large bandwidth to build a copyrighted, high-definition video platform.

The platform will appear as a new website, separate from the present Ku6.com, in the first half of 2010, according to CEO Kevin Li.

The company will also invest another 100 million yuan in Ku6.com for content integration.

“Copyright and high definition are what our strategy is all about,” said Li, adding that the new video platform will be like an online TV station.

Another leading video website, Tudou.com, also has said that it would use 100 million yuan to develop content, including buying copyrighted resources and making video shows. (China Daily)

So are we buying this copyright lip service? Maybe this is where things are headed. These video sites will continue streaming unauthorized copyrighted content, and in return they will pay off (some) content providers for the use of HD content.

Seems like a strange and inefficient way to run an industry, but what do I know?