Netflix wades into China through licensing deal

Netflix has signed a deal with iQiyi, a popular Chinese streaming service and subsidiary of Baidu ("China's Google"), the company said on Tuesday at a media conference in Indonesia, according to The Hollywood Reporter. The company declined to provide details about the deal, though it's understood that some of the company's original shows will soon become available through iQiyi. It's not expected to make significant revenue through licensing.

Flashback: Netflix conceded in October that directly setting up shop wouldn't work in China.

Entry point: China is a notoriously challenging market for Western Internet companies because of its strict regulations and government approval requirements. Netflix is using a common strategy to pierce into China: partnering with a local company. Other major companies not operating in the country include Amazon, Facebook, Twitter, and Google.