AOL Tests Chinese US Site; Quiet on China Market

By Kenneth Li

America Online on Monday said it has launched a public test of a Chinese-language version of its U.S. Web site to court Chinese Americans, offering features that in some ways are more ambitious than its main U.S. site.

The new site targets an estimated 2.7 million Chinese Americans and offers full-length features and episodes of TV series from China, viewable directly off the site. AOL's main U.S. site plans to offer vintage TV shows, but does not offer full length movies.

Up to 20 hours of video will be available at any time. It can be found at

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The online unit of Time Warner Inc., the world's largest media company, is racing to bolster its online advertising business by making more video and services available for free as it staves off losses at its paid subscription Internet service.

A spokeswoman said AOL planned to focus on its U.S.-based target audience and has not announced intentions to re-enter the China market.

The company, which has over 25.5 million subscribers in the United States and Europe, announced a joint venture with Chinese PC manufacturer Legend Holdings in June 2001 to court China's growing market, which it abandoned a year later.

By 2004, Jonathan Miller, chief executive of AOL told Reuters at the time the company was in discussions to enter the Chinese market again.

Technology and Internet companies Yahoo Inc. (Nasdaq:YHOO - news), Google Inc., Microsoft Corp. and Cisco Systems Inc. have come under fire in recent months for concessions they have made to comply with government policies in the world's fastest growing market.

Yahoo gave information to Chinese authorities that led to the imprisonment of an Internet writer, according to defense lawyers. Google in recent weeks launched a China-version of its site that edits politically sensitive search results.

Google has been criticized for creating a version of its site that blocks politically sensitive terms. Microsoft has been taken to task for shutting down a blog critical of China.

This week, technology companies will answer to congressional leaders at a hearing on U.S. companies operating in China.

For now, AOL is focused on the U.S. market and said it worked with U.S.-based MediaZone, owners of ChinaPortal.com, which provides high speed Internet video programming geared toward overseas Chinese viewers

AOL's Web-based e-mail services will also available in Chinese, the company said.

The site and its services features pages in traditional and simplified Chinese characters.

Copyright 2006 Reuters Limited.

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