Recently, Leshi Internet Information and Technology (300104.SZ) announced that they will invest RMB 50 million to purchase copyrights of hundreds of films and TV plays in the next 1-2 years.

According to industry estimates, total expenditure for “hundreds of films and TV plays” will be nearly RMB 100 million, since the market prices for a single movie copyright and a TV play of 20 episodes are RMB 500,000 and RMB 300,000 respectively. At the initial stage of online video industry, the highest price for a TV play was RMB800-1000 for a single episode. However, at present, as for hot TV play, the price for a single episode has rocketed to RMB 800 thousand to RMB 1 million.

From the end of 2010, Leshi has invested nearly RMB200 million to purchase copyrights for videos. Currently, its copyright storage volume reaches 50000 episodes of TV plays and 4000 films.

Leishi has received obvious return with its investment. Its online video copyright distribution business and online HD video service sharply increased in the first half year of 2011, with the operating income of RMB223.1034 million, up 118.79% YoY, and net income of RMB58.3951 million, up 87.24% YoY.

For SOHU, sum of purchase for copyright of video programs reached USD20 million. Meanwhile, YOKU(YOKU.NY) purchased copyrights of 400 films from Warner Bros. However, Ku6(KUTV.NY) did not focus on directly purchase of copyright, but to apply the mode of profit sharing with its suppliers.