Revenue from the sector grew 48 percent in the last quarter alone, to 1.48 billion RMB ($234 million), and is up 139 percent over the year, according to Enfodesk, Analysys International.

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The main players are Nasdaq-listed Youku (25.3 percent of revenue) and Tudou (14.5 percent), which have each threatened to sue each other over alleged re-use of TV shows for which they own rights, followed by Sohu (NSDQ: SOHU) Video (13.3 percent).

FutureSource Consulting recently said annual paid video revenue in the U.S., UK, France and Germany would finish 2011 having tripled from a year earlier (to $3 billion).

Photo: Youku