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Baidu's Online Encyclopedia to Explore Offering Paid Content

Sina Tech, 12/29/16

Chinese internet company Baidu's (Nasdaq: BIDU) online encyclopedia service Baidu Baike ("Baidupedia") recently announced that it will explore new operating models in 2017, including a "search + feed" dual drive mode and a paid content business model.

A representative for Baidu said that recommended content from Baidu Baike will be suggested to users' mobile user feeds, Baidu's online text-based user-generated content sharing platform Baijiahao, and smart hardware devices. Baidu search results will also be optimized, so that content from Baidu Baike's "Miaodong Baike" and "Baike Tashou" functions will be added to results from the Baidu Aladdin open platform for online search.

Baidu Baike will also incorporate artificial intelligence and big data technologies into its content production, recommendation, interaction, and review services. Real time user search data will be shared with content authors to provide suggestions for good categories with high page view conditions. Rating scores and personalized recommendations will also be used to help upgrade content quality. User interaction features - such as user rating, review, and "follow" mechanisms - will be enhanced, and data will be shared regarding content playback, completion, and share rates.

A representative for Baidu Baike said that the service plans to explore ways of commercializing its content, including user rewards, paid content, ad revenue sharing, and brokerage services, to share and develop knowledge-based profits.

Baidu Baike also said that since the service launched in April 2006, it has now reached more than 14 mln content entries. Its pages are accessed more than 400 mln times every day, and its Miaodong Baike short video service, launched earlier this year, now has more than 150,000 videos and more than 8 mln playbacks every day.

Editor's Note: While the introduction of paid content into Baidu Baike may represent a good monetization opportunity, Marbridge believes it could also set the stage for another scandal like that which erupted around the commercialization of Baidu's Post Bar bulletin board system earlier this year. For more background on the Post Bar scandal, please see China's Internet Watchdog Criticizes Baidu over Post Bar Scandal, MD 1/18/16 issue, and 36 Healthcare Non-Profits Report Baidu for Listing False Medical Ads, MD 1/15/16 issue.

Keywords: Internet encyclopedia scandal online search Baidu Baidupedia business model BIDU Baidu Post Bar

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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