Netflix agrees first China licensing deal with IQiyi

The Netflix Inc. website and logo are displayed on laptop computers arranged for a photograph in Washington, D.C., U.S., on Tuesday, Jan. 21, 2014. Netflix Inc., the largest subscription streaming service, is expected to release earnings data on Jan. 22. Photographer: Andrew Harrer/Bloomberg via Getty Images

 

Bloomberg

Netflix Inc. agreed to provide television series to China-based iQiyi.com, the streaming-video service controlled by Baidu Inc., gaining access to the only major film market that had eluded the world’s largest paid video service.
The licensing deal covers television dramas, animated series, documentaries and variety shows, iQiyi said in an emailed statement on Wednesday. Popular Netflix original content including the latest seasons of “Black Mirror” and “Stranger Things” will probably be streamed on the Chinese site simultaneously, according to the statement. The drama “Mindhunter” and animated comedy “BoJack Horseman” will also be available on iQiyi.
Netflix has been looking for a way to enter China to help build a global audience for its growing library of exclusive shows. Netflix expanded to 130 countries last year and surpassed 100 million subscribers worldwide last weekend without the benefit of viewers in China, where government censors limit the types of content available.
“All of iQiyi’s overseas partnerships will strictly adhere to Chinese regulations on film and TV imports,” Yang Xianghuang, iQiyi senior vice president, said in the statement. Netflix shares jumped to a record Tuesday in US trading. Variety reported earlier that a Netflix executive, Robert Roy, announced at a conference in Indonesia that a deal with iQiyi was in place.
Netflix shares climbed 5.8 percent to close at a record $152.16 in New York trading. Baidu’s US-listed shares climbed 3.9 percent to $186.99. While World Wrestling Entertainment Inc. agreed in June to let China’s PPTV air two of its shows and stream them exclusively, other foreign video providers have struggled to get a foothold in the Chinese market.

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