A couple of new reports are shining a spotlight on the turmoil rippling through the online video space, following a period of huge optimism that ended earlier this year with a crackdown by Beijing. One report shows a major consolidation that took place last year could be getting ready to enter a second round, with word that struggling social networking (SNS) firm Renren (NYSE: RENN) is selling its 56.com online video unit to Sohu (Nasdaq: SOHU), one of the sector’s leaders.
The other report details a new spending binge on self-produced original programs by another leader, Baidu-backed (Nasdaq: BIDU) iQiyi. That trend is accelerating following the regulatory crackdown, which has made purchasing popular TV programs and movies suddenly much more difficult. That’s forcing sites to find other ways to keep their viewers entertained and maintain their viewership. Read Full Post…
