Videos Key as China's Young 'Give Up' on TV: Sohu CEO

Monday, 4 Feb 2013 | 9:43 PM ET
Video to Be Big Growth Driver: Sohu.com CEO
Charles Zhang, Chairman & CEO of Sohu.com talks about the cost pressures facing the company and how they will overcome them.

Videos are the way forward as China's younger generation "gives up" on TV, the CEO of Sohu.com, which runs one of the country's most popular online video sites, told CNBC on Tuesday.

Sohu.com on Monday said its quarterly profit fell 9 percent as rising expenses offset strong growth in revenues for online games.

(Read More: China May End Ban on Videogames, but So What?)

The company expects its video division to become profitable in 18 to 24 months.

Sohu.com Chairman and CEO Charles Zhang said he was confident in this forecast because of the rising popularity of video among young people in China, the world's second biggest economy.

"The general trend is that in China, especially the younger generation, have given up TV to watch videos, so the TV-watching audience is shifting towards videos with an iPad or other devices that can be used in a coffee shop or on the way to work," he told CNBC Asia's "The Call" in an exclusive interview.

(Read More: Move Over Amazon, Here Comes a China Juggernaut)

"So it's really a big trend," he added.

Sohu.Com shares, which are listed in the New York, fell more than 5 percent on Monday following the earnings report.

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