Victor Koo, Youku's founder. [Photo provided to China Daily]

"That's to ensure social values are respected and the content is positive. Whatever the format, ostentatious products will perish if they're only to grab attention. You have to solve basic problems before your channel becomes popular."

Youku's founder Victor Koo says the rise of individual channels has just begun and will lead to a new epoch.

"Online videos aren't unidirectional media but, rather, audience-interaction platforms," says Koo.

"Live online videos are hot, but a growing number of people are complaining their content lacks diversity. Homogeneity restricts live online videos' business-model development. I'm afraid the fad won't last. So the industry has to upgrade. Channels need to make breakthroughs in content diversity."

The market senses the potential.

About 67 percent of investment in China's online industries in the first half of the year went to online videos, China Business Network reports. Only one in 10 viewers "do nothing after watching the program".

"The industry is no longer a jungle where only the strongest survive," says Koo.

"I prefer to call it an ocean, where a shoal of fish can live together, and prosperity can be achieved."