DreamWorks Animation partners with China’s leading online video site

DreamWorks Animation has become the second Hollywood studio to enter into a distribution agreement with China’s top online video site, Youku.com.

Youku said Monday that it had signed a deal with the Glendale-based animation studio to distribute the “Kung Fu Panda” movies in China, marking the first time that DreamWorks releases have been made available in that country through the Internet.

Both of the previously released “Kung Fu Panda” films, which were hugely popular in China, will be immediately available on Youku’s premium on-demand service for less than $1. The movies will subsequently be available for free viewing on Youku’s Hollywood Movie Channel.

The deal comes two months after Warner Bros. reached an agreement with Youku to stream 450 of the studio’s movies, including the “Harry Potter” and “Lord of the Rings” series with Chinese subtitles, on its website for a charge of 46 cents to 77 cents.

To compete against rampant piracy, Youku makes its content cheaper than bootleg DVDs, which cost about $1.50 in China. COMPANY TOWN