Youku.com, a Chinese Internet television company, said Tuesday that it signed a wide-ranging three-year deal to show hundreds of Warner Bros. movies through its paid service.
The deal raised optimism on the future of paid video in China, sending Youku.com shares up $8.55, or 31.3 percent, to $35.89 in afternoon trading Tuesday.
Youku said the deal encompasses up to 450 new releases and older titles.
Youku's "Premium" service launched on a test basis in October and currently has more than 300 movies.
"Over the past year, we've seen Chinese Internet users become more sophisticated in terms of what they'll spend money on," Dele Liu, Youku's chief financial officer, said in a statement. "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."