While one of China’s leading online video websites, Youku, has confirmed that good things (in this case an official broadcasting licence hot on the heels of $30 million cash infusion) do indeed come to those that wait, its fellow online video counterpart 56.com has been somewhat less fortuitous in comparison. Mysteriously in hiatus since early June, the notice on their website claims that the company is still undergoing maintenance and upgrading to serve you better”.

The burgeoning online video industry in China has raked in more than US$300 million of venture capital despite murky regulatory issues surrounding the sector since late last year. As highlighted in an earlier posting (“Connecting 2 China: C2C Pre-Olympics 080808″), findings from the China Internet Information Center had revealed that there were more than 160 million Chinese online video network users by end 2007 – which works out to be about 1 out of every 1.3 internet users in the country.

Amidst rising speculation on further monetization challenges facing Youtube, another popular (and licensed) Chinese online video site, Beijing-based Ku6, had also netted more than $30 million funding just last month, according to Pacific Epoch. Ku6.com is reportedly the sole internet video operator to be granted broadcasting rights from CCTV to formally launch the Olympic service plan, to date.

As testimony to the buoyant digital media scene in China, Giant Interactive – a Chinese online gaming company listed on the New York Stock Exchange, recently anounced that it was acquiring a 25% stake in 51.com (the largest independent online social network in China with 120 million registered users and 31.5 million monthly unique visitors) for $51million. Other investors in the company include Sequoia Capital China, SIG, Intel Capital and Redpoint Ventures.