Old Boys: The Way of the Dragon, the sequel to a popular 2009 short film on Youku, had its nationwide cinema release in July. [Photo/China Photo Press]

Over the last three years, Youku Tudou has jointly produced eight movies, including writer-turned-director Han Han's debut film The Continent, which grossed more than 630 million yuan ($102.53 million) nationwide.

Film companies want to work with Youku Tudou because of their advantages in big data mining and analysis, which identify the viewing habits and interests of audiences and make it easier to market films, says Zhu Huilong, Heyi Film's CEO.

Video websites like Youku Tudou have mature online marketing strategies and multimedia including trailers, documentaries and promotional music and videos made based on audiences' preferences. Their advantages in big data are also being used during the production of films.

The producers of Old Boy, a movie that initially had a sad and dark ending, changed the ending after a survey showed audiences preferred a happy and warm closure.

Victor Koo, founder of Youku Tudou Inc, says the video website will also begin selling movie tickets and creating products related to the films.

In a recent interview with the Beijing-based The Economic Observer, Koo describes his company as a combination of Youtube, Netflix and Disney. He says there hasn't been a company like theirs in China, so Youku Tudou has an opportunity to do something unique.