Youku Premium Officially Launches Deal With Warner Bros.

BEIJING, June 28, 2011 /PRNewswire-Asia/ -- Youku.com, Inc. (NYSE: YOKU), China's leading Internet television company, officially launched its Youku Premium paid content platform today after signing a digital distribution agreement with CAV Warner Home Entertainment Co., Ltd., Warner Bros. Home Entertainment Group's joint venture in China. Under the terms of the three-year agreement, Youku will add a total of 400 to 450 Warner Bros. New Releases and Catalog titles to its Youku Premium content library.

Youku Premium launched in beta in October 2010. Since then, the service has processed 200,000 paid transactions for its library of more than 300 movies and 3,880 educational programs.

Warner Bros. was one of the first major international studios to tap the potential of China's growing premium online video market. The studio first worked with Youku earlier this year for the launch of the film Inception on Youku Premium, then in beta. Youku Premium now also has Harry Potter and the Deathly Hallows: Part 1 on offer, and will add the conclusion of the series after its release later this year. Other popular titles, including the Lord of the Rings trilogy, are also available for premium online viewing.

"Over the past year," said Dele Liu, Youku's CFO, "we've seen Chinese Internet users become more sophisticated in terms of what they'll spend money on. People are increasingly willing to pay for high quality content, and we take the growth of Youku Premium as a sign that the market is improving for paid services."

"We spent the time when Youku Premium was in beta making sure that we had the technology to power the service," said Liu. "Now we're working to make sure that we've got the content that will set Youku Premium apart from the competition, and our new agreement with Warner Bros. is a major step in that direction."

After the success of Inception earlier this year, a number of Chinese filmmakers made their new releases, including box-office record-holder Let the Bullets Fly, available for paid viewing on Youku Premium.

About Youku:

Youku.com Inc. is China's leading Internet television company. Our Internet television platform enables users to search, view and share high-quality video content quickly and easily across multiple devices. Youku, which stands for "what's best and what's cool" in Chinese, is the most recognized online video brand in China. Youku's American depositary shares, each representing 18 of our Class A ordinary shares, are traded on NYSE under the symbol "YOKU."