Netflix, Inc. (NASDAQ: NFLX) is to enter Chinese market by partnering with local video streaming service iQiyi.com, a move to continue its global expansion.
The developer of the House of Cards said on Tuesday that the company will introduce original content in China in a licensing deal with iQiyi.com. More details of the deal is still unknown, including when the content will be in the Chinese market, according to Variety.
The move comes after Netflix’s co-founder and Chief Executive Reed Hastings the firm had made no progress in obtaining government approvals in China in October.
Netflix has been expanding rapidly to other countries in the recent years. But the company has trouble in breaking into China, where streaming services are subject to strict data storage regulations and contents are required to be approved before they can be displayed on a platform.
iQiyi.com, backed by Baidu Inc., is one of China’s largest streaming services. It generated 10 billion yuan revenue in 2016. The company also raised 1.53 billion in February.
Netflix shares jumped 3.86 percent to $149.40 in the early trading.