Chinese government to launch Netflix rival

Although Hollywood doesn't exactly have a chummy relationship with China, the nation is hoping it can start changing that by promising revenue deals for studios that opt to be a part of a new government-run streaming movie service. The idea sounds like something most Americans could never even imagine, but it could be a huge thing for those in China.

The new online service, which is to be operated by the state-owned China Movie Channel, has already signed on a content agreement with Paramount Pictures. Movies and TV shows are included. MGM is apparently also interested in providing content. The service is likely to be priced at the equivalent of less than $10 a month, on par with Netflix. China is partnering up with a company called Jiaflix Enterprises.

"This new venture will bring the best that Hollywood has to offer to viewers in China. It represents a great opportunity for Hollywood to increase its exports to China and enhance cultural cooperation between our two nations," said Jiaflix partner Sid Ganis, who is also a Columbia Pictures chairman. It will launch in the fourth quarter of the year.

[via Reuters]