Hollywood studios are set to break into China's massive Internet market as domestic video sites scramble¹ to screen U.S. movies and dramas on their digital platforms, a move which could also curb² rampant³ piracy⁴.

随着国内视频网站纷纷将美国影视剧搬上数字播放平台，好莱坞各大电影公司也开始抢滩中国庞大的网络视频市场。影片在线播放也有助于遏制猖獗的盗版行为。

China's Youku's and Sohu's online video platforms have already cut deals with Disney and CBS Corporation to stream U.S. drama serials⁵ such as "Desperate Housewives," "Grey's Anatomy⁶" and "Gossip Girl," and more such deals are expected.

This represents a lifeline for Hollywood studios who have struggled to make money in China due to persistent⁷ piracy and the country's quota⁸ system that limits the number of foreign movies screened in theatres to 20 per year.

"Major Hollywood studios have struggled to find a viable⁹ business model in the China market and cooperating with China's online video sites for paid viewing of their content finally gives them a way to make money here," said Mark Natkin, managing director of Beijing-based consultancy Marbridge Consulting.

China is the world's largest Internet market, with more than 450 million Internet users, and online video firms are stepping up their fight to secure a bigger piece of the market share to win advertisers.

Advertising¹⁰ revenue in the domestic online video market, which was virtually non-existent five years ago, is now estimated to be worth 1 billion yuan ($155 million). This is expected to grow at double-digit rate for the time being.

Online video providers such as Youku have also started pay-per-view for some movies, thus giving them a new source of revenue.

Analysts¹¹ say it's still too early to assess these deals' financial impact on Hollywood studios over the longer term, but agree that this offers a long-awaited entry point for Disney and others to the world's second biggest economy.

For online video providers, buying international content is not cheap, with payments for licensing¹² fees needed upfront. But it's well worth the risk given the rapid growth in the world's biggest Internet market and growing appetite for Western movies.

The country's biggest search engine Baidu has also ventured into this sector¹³. Its Qiyi joint-venture with Providence¹⁴ Equity¹⁵ Partners has cut deals with Disney to show all seasons of Desperate Housewives, Cougar¹⁶ Town and Grey's Anatomy（解剖） .