Koo at Beijing University today at the 2.0 forum hosted by Stanford Business School

Koo, CEO of Youku, attended the China 2.0 Forum hosted by Stanford Business School today at Beijing University and delivered a keynote address to review several key time nodes in the 20-year history of the Internet.

In his speech, Koo said internet 1994 years into China, from the earliest birth of the portal, to Alibaba (rolling information) as the representative of the rise of the electric business, and then to today's most popular multi-screen and O2O concept, the Chinese Internet has been copied and imitated, to grow into a global Internet map unique role.

Koo thinks, multi-screen and O2O will be the future development of Chinese Internet two big words.

Koo entered Stanford University in 1992 for an MBA and returned home in 1994, the first time China had access to the Internet. In today's speech, Koo laughs that his Stanford classmates mostly chose to stay in Silicon Valley, and that he was the only one who returned home and was seen as a crazy move. (Yan Fei)

The following is the full text of Koo speech:

Just before the 20 anniversary of 1994, probably in May, I graduated from Stanford Business School, when I was the only one to move back from Silicon Valley to Beijing, most of my classmates were in Silicon Valley, so they thought I was crazy to move back to Beijing. After 20, China is still my base.

I used to work with 5 startups and three early-stage entertainment companies. Over the past 20 years, through collaboration with a range of start-ups and internet companies in China, I have had a lot of experience with the development of the Internet over the past 20 years, especially the current development of China, which has allowed innovation and opportunities to grow.

This can be said to be the result of China's continuous innovation. Let's start with a brief review of history.

1994: The Internet into China

We had our first 64K network in 1994, connecting China to the world's Internet. I had just returned from Stanford to Beijing, and we could only use email and some simple websites.

But at that time, China and the United States on the internet there is a very obvious difference, my classmate on ebay, but at that time China did not spend the network.

1997: The rise of consumer Internet

1997-1998 is the first year of the Rise of the consumer network in China, I have been waiting for a long time. At that time I was a product manager, one of our investment projects is a media company, including a lot of international publishing, whether in the international market or in the Chinese market.

We have created many of China's early websites, including Sina, and one of its founders has also been to the scene. These are the new generation of consumer websites.

That time and now is a little different, especially in China and the rest of the world, there are many differences in internet development. Many people say that China's network is not a replicated version of other places? But we see different companies in different types of Chinese web development.

We are all from the Silicon Valley model development, but we have our own Asian model, especially like Japan or South Korea's model, are spread more widely, also entered China, also participated in the first phase of the development of the Internet.

Whether it's Silicon Valley or the world, the central word is entrepreneurship. We have localized all models in China and adapted to the local environment. Therefore, our localization, as well as our adaptation, let China in the early development of the Internet, developed its own Chinese-style internet.

2005: The electric business has sprung up

At that time, our entrepreneur did not have a lot of experience, can only learn while doing. By the year 2005-2006, companies such as Alibaba and Tencent have grown increasingly different in e-commerce and social networking.

From business-to-business to business, there were no successful cases in the world, from Consumer-to-consumer to Business-to-consumer, which are now bigger than ebay and Amazon combined. We see their development patterns, not from the international model to draw on, but their own production.

The development of the network to the broadband network. From 94 to now, the distance between China and the world is more and more close, and innovation is also developing at the same time, even before the same period of the world, see China's innovation model, is also developing quite quickly.

The background of all this development is a revolution and broadband development, and at the end of 2005, there has been considerable development. We see that the picture is a Chinese word "hop", also the Chinese people have been discussing for many years, in 2005-2006 we can see that this is the first multi-screen network integration. It was at this time that I founded the company.

In addition, we have a very popular talent show in 2005, this is a very popular talent show. It is on the computer and mobile phone, let people through mobile phone text message vote, this is a multi-screen entertainment integration of an early model. Of course at that time everyone was known for Youku and potatoes.

In the Chinese, "Hopewell" representatives of cooperation, Representative polymerization, poly-Multiple integration, whether it is multiple screens, or 2005, 2006 of Technology, are based on broadband, and such innovation is caused by different markets.

We have seen many such examples in the 2005-2006. Potatoes were founded in April 2005. Youku also cooperates with a number of television and film factories, and we have such cooperation in 06. The development of this series is because we have different markets. We mainly use user generated content to focus on the Chinese audience's own habits, and this is our early development of the conclusion.

2009: User-made content

In the same 2009, potatoes and Youku were started in this original content, and also based on the market's specific operation to see the United States this market penetration. Because the penetration rate of fixed nets is very high in China, PC network users are about 500 million people, the main growth is based on mobile phones, the main TV station to the 5-Year-old until 75 years old such a watch, and this can be said to be such a online audience, mainly targeted at some relatively younger groups.

It can be said that the difference between this age is very large, so say this site an original content, opportunities in China are bigger than those in the US, because it can be said that there is a large demand in this age range from 45-50 years old, and it can be said that there is a relatively fresh TV show, including "Old boy" and "Never mind has caused a lot of stir in China. And the potato impression festival, such content is tailored to the needs of the age group.

There are fewer competitors in this market. China is a very unique country, it has many provinces and cities, there are municipal and county-level television stations, there are a lot of programs. In the United States, there are only dozens of television stations, the difference is very big. If you look at some of China's major television stations, they often focus on their own presentation of the program, and some international programs in China is no way to play. We can take advantage of this opportunity to take advantage of this platform and bring some international draft and some programs to China.

The United States and other developed countries face a problem: payment is an internet company one of the blocks, but such a resistance, has been gradually overcome in the development, so that this opportunity, there are continuous block, some new opportunities are based on this market differentiation, which will affect the future of China's Internet development direction.

2013: Multi-screen era

One of the key points here is the difference between innovation. With the continuous efforts of Chinese companies, the current trend of innovation in China is becoming more and more obvious.

To 2013, 2014, we have entered a multi-screen era, can say PC, tablet, mobile phone, as well as smart TV, there are these platforms, users can at any time, any venue, access to the Internet, can make people's work more convenient, people on the road, the subway, The bus can watch the show anytime, anywhere. Multi-screen technology, for people's lives bring great changes and promotion.

There are mobile phones, mobile internet, change people's lives, I would like to stress that a trend in China is more important, because we have already mentioned that the penetration of the market through the PC has slowed down, the mobile phone than the application of the PC wider. Small cities, and some rural users who rely on mobile phones for more information on the web, so that in such an area, the outlook for the entire industry has become very fast.

For example, many internet companies, they are taking on some scale shifts, and they want to switch from one mainstream of the PC to mobile phones and mobile terminals. And of course there's an industry in mobile apps. Some small new companies are hard to get into China's top 10, and the competition is fierce.

Multi-screen development is a key area that we should pay attention to. Another phenomenon is the line of online interoperability (O2O). So this is a situation where we all have a wide range of discussions around the world, starting last year.

There are other places in China where the trend is faster. Last week, my office of the wind VCs, they compared the company's situation, based on their own situation and observation, they realized that a reality: O2O or O+o, online convergence, the development in China very fast.

The competition in such a field is very high, and the development is very fast, Chinese network companies continue to promote their own strategy, there are some changes in the business, the entire Internet will be affected by this, the developing countries and the United States such developed countries will be more and more convergence.

Last week I saw the CEO of a famous offline company in Shanghai, who spent most of his time studying the internet last year.

Give a small phenomenon as an example. Film, it for the media and entertainment, is a very big show. Youku potatoes have started to distribute online, including the filming and production of micro-films, as well as some offline collaborations.

In such a process, we work with the offline partners more and more closely, whether in the production marketing or production process is the case, you may know that the recent one very famous film "Captain America 2", when the protagonist came to China, we can be published online, causing a strong response from netizens.

The same trend can also be noted that the previous micro-film "Old Boy", will soon move on the big screen, you can see online and offline polymerization more and more quickly.

When we first built Youku potatoes, we were targeting online video sites, but as app traffic changed, we changed. Two years ago, PC traffic 10 times times larger than mobile phone traffic, and now the viewing volume, the number of visitors, mobile phones are much larger than the PC, we define as a multiple-screen entertainment platform.

As the market changes, we are constantly changing, and as we look to the future, I would like to share with you three observations and comments. You can see that China's network is constantly being integrated, like Alibaba, and some other companies are doing a lot of strategic restructuring.

Another hidden danger is that, looking at some western situations, are we turning an open Internet world into an open one? They continue to develop their business in China, I hope that more development can arouse people's attention. We are looking forward to seeing the phenomenon and cooperating with the international companies, hoping that some reorganization and cross-regional reorganization will achieve better results. Also wired on and offline, I hope you will see in the future, do not simply do online, or simply do offline, I hope this trend continues to evolve. In the future we see many innovative companies.