BEIJING: CCTV, the state-operated Chinese broadcast giant, has developed two new online video services, as it seeks to heighten its new media presence.

The first of these portals, Xiyou, will offer high-definition and video-on-demand services, while Bugu is a platform broadly similar to YouTube.

Although the organisation has not set a formal launch date for these websites, testing on both properties began earlier this month, and it is expected they will be made live in the near future.

Liu Dan, a senior industry analyst at CCID Consulting, said "with the two new sites, will cover the two mainstream online video site models, live broadcast and video sharing, allowing it to effectively target different user groups."

According to Liu, this development is just one example of how some of the biggest media players in the world's most populous nation, such as Xinhua and Shanda Interactive Entertainment, are aiming to embrace the opportunities afforded by digital media.

"As the online video market grows, it has attracted an increasing amount of attention from investors. It is likely that capital will continue to flow into this field in the short term," Liu predicted.

However, while funding appears not to be a problem at present, further revenue streams will need to be developed if these offerings are to succeed in the long term.

"Although advertising remains the major source for revenues for online video sites, advertising alone can't fully support operations," Liu concluded.

Data sourced from McKinsey; additional content by Warc staff