Youku, Warner Bros enter video deal

China’s biggest online video website Youku.com (YOKU.NASDAQ) on Tuesday started offering US video-on-demand services through a partnership with Warner Bros, Bloomberg reported. The pay-per-view service means that Youku – which has reported losses since its inception in December 2006 – will have an additional revenue source beyond advertising. Its three-year agreement with Warner Bros’ parent company, Time Warner (TWX.NYSE), will allow Youku to provide as many as 450 new and classic films to Chinese internet users. Dele Liu, the company’s CFO, said the pay service may account for 10% of its revenue within five years. Youku began trading in New York in December 2010.