In fact, the company had announced how it would favour licensing deals past year and now it has linked its first major deal on the Chinese soil with streaming service iQiyi.
Netflix has struggled to break into the Chinese market, where streaming services are subject to strict data storage regulations and foreign films and television are routinely censored. Variety was first to report that the company has signed a deal with iQIYI to distribute Netflix content. "China is an important market for obvious reasons; it's also a challenging market for obvious reasons", said Roy, according to the Hollywood Reporter.
Netflix has been keen to get into the Chinese market but thwarted in its efforts to date.
Netflix has been looking for a way to enter China as part of its plan to amass a global audience for its burgeoning library of exclusive shows, from "House of Cards" to "Stranger Things". Netflix CEO Reed Hastings recently said that a full China launch was unlikely in the near term, and that the company would focus on licensing for now.
iQiyi.com is one of the country's largest streaming service backed up by Baidu, the Chinese search giant.
This month Netflix predicted a global increase of 3.2 million subscribers in the second quarter, outpacing analysts' estimates of almost 2.4 million.