Five managers of internet video provider Qvod will face prosecution on suspicion of spreading pornography online.
Preliminary investigation finds that the Shenzhen-based company spread a large amount of pornography and pirated content via its video player, starting from the end of 2012.
Investigation shows the company made huge profits by charging users and advertisers for its porn content.
Han Hongyu is from the Beijing Public Security Bureau.
"Based on the company's account books, Qvod generated over 300 million yuan of revenue by 2013. Around 180 million yuan, or 60 percent of the money came from the fees charged on users for porn videos."
Police arrested 10 suspects in the case in April.
The owner, Wang Xin, who fled abroad, was arrested last month in South Korea and later repatriated to China.
The arrests come as the Chinese authorities intensify a crackdown on pornography.
Since April, the authorities have closed nearly 1.8 million social networking accounts for releasing porn and inviting people to solicit prostitutes.
