This is a win-win deal. It will be the first time that any DreamWorks Animation movie is available legally in mainland China in streaming form. It's also a victory for Youku. The popular streaming site launched Youku Premium as pay-per-stream venture in beta last year, making it official when it got Time Warner
Let's hope the Hollywood infusion helps. All but $1.2 million of Youku's revenue this past quarter came from display advertising. In other words, it's not selling a whole lot of premium video.
China loves going to the movies. The populous nation is IMAX's
Investors have turned on China's Internet video darlings. Tudou
A wisecracking panda won't turn Youku into a lean, mean, profitable machine overnight. However, if it's the catalyst for parents to set the right example by paying up to Youku Premium to entertain their kids, this simple two-picture deal may be more important than investors think in coloring Youku's bigger picture.