Baidu approved to provide news

[DavyBUK]

Chinese Internet search leader Baidu won approval to become an online news portal, government and industry sources said today, heating up a rivalry in the world's second-largest Web market, according to Reuters.

China's State Council Information Office (SCIO), granted Baidu an Internet news content service license last week, a government source said, allowing Baidu.com Inc -- often referred to as "China's Google"-- to do its own reporting rather than simply show news search results at present.

This will give Baidu a clear edge in terms of content over competitors who lack the permit, industry analysts said.

"This is definitely competition for Google," said Doug Crets, a Hong Kong -based researcher at Media Partners Asia.

"In most of these online sites, we're going to see an increasing amount of content, and content is going to drive revenue, or consumership of those sites," he added.

The SCIO is the cabinet spokesman's office, which is responsible for the government news release and jointly regulates Internet content with the culture and information ministries.

Baidu had already started preparing its news department and had been ready to hire news-related staff, said the government source who is familiar with the situation. The company also changed the logo and name of its "Information" channel to "News" channel in Chinese characters on www.baidu.com early last week.

An industry source close to the Chinese company confirmed Baidu obtained the license but declined to elaborate. A Baidu spokesperson declined to comment.

China's largest Internet portal, Sina.com, obtained a news service permit a few years ago and carries its own reports. Still, Baidu is the first online search engine in China to win such a license.

"A news license is a rare resource to Internet companies in China. So far only very few Websites are allowed to report news legally in the country," said the government source.

"Obviously, applying for the license also shows that Baidu has ambitions as a content service provider rather than merely being a search tool," said the source, adding that Baidu had won the "news war" against its chief rival, Google, in China, by securing the news service license.

News and search are the two most popular Internet hobbies among over 120 million Chinese netizens, according to a government research report.

Industry watchers say Baidu's news ambition can help it gain more online advertisement sales as more users are expected to see Baidu as a portal similar to Sina.com.


http://www.chinadaily.com.cn/bizchin...ent_791513.htm