sohu strings popular american tv china.n last month the chinese regulars ordered them to remove the "ng theory" and other shows after the escalated a crackdown on content considered offensive. stephen engle sat down with an interview with charles john of sohu. >> [inaudible] the video becomes so mainstream and dominant, the old habits of managing, after this incident there more careful and sophisticated. i think it's a good thing. theory" isng sacrifice. >> are you being diplomatic? >> no. i'm telling the truth. less than one percent of the shows are taken down. i think we are enjoying a real dramas inamerican tv china. wags have you gotten an explanation as to why these shows have been taken down? >> i can't comment. of course i know. i can't comment. >> is it the issue of being hijacked by broadcasters so they can broadcast it on regular television? >> it is not related. >> what is happening behind the thats that you know of they need to reinforce monitoring of erotic or political content online? thatdoesn't seem to the "big bang theory" profile. >> it is not directly related. we an

i am satisfied. >> that was the ceo of sohu.speak to the tech exec famous for his peanut butter manifesto. why some companies may be waiting for better market conditions. you can watch us streaming on your tablet, bloomberg.com, and amazon fire tv. ♪ >> this is "bloomberg west." concerns of overvaluation have companies delaying ipos. joining me now to discuss this is the guy who wrote the peanut butter manifesto in 2006. he argued yahoo! was spreading resources too thinly. he is with us now in the studio. you will never live down that manifesto. i want to start with box. we are seeing signs they are struggling to get to market. what is your take? >> on one hand they are in a huge market. the market is growing fast. like some of the companies out there that we have seen, they are spending a lot to drive growth. >> they are spending a ton. >> marketing, $17 million a month. they burn more in a few months than we have in our entire history of the company. it is a different approach. we are seeing couple companies spending a lot to

interviewrt two of my with the ceo and founder of sohu.tion china spends much more time on video. many of them don't turn on tv. >> do you fear that regulations a control movie rights and free-to-air television, the sensitive issues are going to all of a sudden suffocate what you are doing eventually? then this is the first step in for the controller streaming content? >> i don't think so. probably, there will be a lot of complaints. stations, station heads and worrying that the new media is taking their lunch. >> are they? >> yes, the tv stations are very worried. >> the state owns state broadcasters. so are they protected? theyat i am saying is that are not in a strong position or legally in a very -- to protect them. probably, they have some connections. 30 years ago, the government would protect them. >> what laws right now protect you when you go out and buy content from the united states? what protects you right now in china? you go and buy another hit show, not "big bang theory" but the next big thing and you get 1.4 billion cliques

to the netflix of china -- sohu is an online video platform that streams popular u.s.ion shows in china. chinese regulators ordered them to remove "the big bang theory" and for other shows after the government escalated a crackdown on content considered to offensive. stephen engle sat down with the next dose of interview with the ceo of sohu earlier today and asked about the challenges for chinese regulators as they try to write delayed video content online. >> i think they are quite new to the internet. they were very busy with the tv stations. is mainstream dominant and they started to take on this job and they have old habits of managing. after this incident, i think they are more careful and more sophisticated. i think it's a good thing. " the big bang theory" was sacrificed but it is a good thing for american tv companies. >> are you just being diplomatic? >> no, i'm telling the truth. it's less than one percent of the shows are taken down. i think we are enjoying a new spring of american tv dramas and china. >> to date, have you gotten and asked clinician as to w

doing ite regulators to sohu, and that is my little heory," and i am a fan.med from the united states taken down, including that one. the founder of so who sohu said it was not related to vulgar or that the broadcaster, cctv, wanted to hijack it and play it themselves because it is so popular and garnering pretty high advertising revenues. it is among the highest rated programs in china. this case is seen as a litmus test of how regulators will be exploiting streaming business in china. this is part to of my interview. >> spending much more time on many of them, they do not turn on tv. >> do you think that many of the regulations that control movie rights and the censorship issues, they are going to, all of a sudden, suffocate what you are doing? eventually, that this is the first step in controlling streaming content? >> i do not think so. there will probably be a lot of complaints from the tv station and worried about the new media taking their lunch. >> are they was schumer >> yes. they are paring away. all of tv stations are worried. statey own the broadc

the battle lines are being drawn between these online private sohu andrvices like the state owned stations they are really writing the rules right now for this new way of distributing content, whether censored or not censored. interestingly, he told me off camera that all the speculation about the reasons why "big bang theory" was taken down are not true. he says you can never guess the real reason the show was taken down. it makes it more intriguing. >> i'm sure everyone has a thought but no doubt chinese regulators are faced with a very challenging and evolving landscape. but global flashpoint could played spoilsport. >> welcome back to "asia edge." we talked a little bit about china earlier. ese do you trade with thies industrial numbers coming out of china this week? >> we expect the numbers to be on the disappointing side. had the team running around china, various provinces doing business. it looks like things have slowed down in the second quarter. the lump we need to get over is the third quarter. the third quarter last year was the best of the whole year. so that is a pretty formi