Youku wins online video licence

The award, from the State Administration of Radio, Film and Television (Sarft), was made today, according to chief executive Victor Koo (pictured).

The licence means that the site has fulfilled Sarft’s content criteria. According to regulations introduced earlier this year, video sites must demonstrate they will not air prohibited material, such as pornography or violence, to gain the licence they need to continue operating.

Koo said the licence will help the site prove to advertisers it is a "mainstream environment" for brands. He added: "The Sarft licence verifies that our content monitoring and approval technology and procedures have passed its thorough review process. This should provide more confidence and appeal to advertisers and agencies that Youku is an attractive online video advertising platform."

The news puts Youku, which recently pulled in US$30 million in investment, at an advantage over its chief rivals Tudou and 56.com, both of which have had issues with the authorities. Earlier this year Tudou was reportedly issued with a shutdown warrant, while 56.com has now been offline for more than a month. Sources close to both sites say they have suffered due to the content they carry.

Last month Sarft issued licences to 247 smaller sites. One of those sites, ku6.com has since secured $30 million in funding as well as an Olympics content tie-up with CCTV.com.