Youku Tudou, another major online video site, has about 4 million members. It will invest 10 billion yuan to build up high-quality paid content. It will offer more than 50 customized dramas for its VIP members.

The online video giant Youku Tudou was acquired by Alibaba Group Holding Ltd last November.

"The post-1990 generation has a rising awareness of copyright and a strong willingness, ability and habit to pay for what they watch. The group has gradually become the mainstream of culture and entertainment consumers," said Wei Ming, co-president of Youku Tudou Business Group and general manager of Alibaba digital entertainment business unit.

Netcast firms' VIP viewers will be given priority to watch overseas TV dramas, dozens of films produced by Alibaba Pictures, sports events such as National Football League and FIFA Club World Cup through cooperation with Alisports.

Wei said Youku Tudou will connect its VIP members with diversified businesses of Alibaba. By compiling and analyzing data on online users' viewing behavior, the company plans to launch tailor-made services and products to create more value.

Feng Jun, a senior analyst at EntGroup Inc, a leading research center of the entertainment industry, said: "The market for paid users of streaming Websites made a giant leap last year and will continue its rapid growth in the next two to three years.

"The online resources are limitless. We notice that some TV dramas that haven't been aired on TV channels, were first played on video websites, which is a feast for viewers and a new commercial model for producers."

There is no doubt that high-quality content increases VIP membership, she said.

However, the market is still nascent. Its scale is relatively small compared with overseas video-streaming Websites such as Netflix of the US, which boasts 74 million subscribers in 190 countries around the world.

"Thankfully, the habit of paying for what they watch is now forming," said Feng. "We expect online content to be wide-ranging to satisfy different audience groups. There will be personalized, elaborate value-added services as well."