BAIDU Inc announced it will establish a new independent online video company to tap the growing domestic Internet market.

The leading Chinese Internet search provider said the new company will provide copyrighted video content through an advertising-supported model, according to its Website.

"We have seen increasing demand for high-quality video content and we hope to serve our users with superior content and focused resources after establishing the new company," said Ren Xuyang, Baidu's vice president for marketing and business development.

Baidu didn't elaborate when the new site will be launched.

Gong Yu, formerly president and chief operating officer of China Mobile's 12580 online booking business, will be the CEO of the new company.

Previous media reports said the new company has received US$60 million from a US-based private equity fund. Baidu didn't respond to the rumor.

Last Friday, NetEase, another leading Internet portal, also launched a video channel in collaboration with Joy.cn, a private video site focused on licensed movies and TV series.
                                                                                                 Source: Shanghai Daily