Warner Bros Entertainment on Wednesday announced that the studio will distribute on-demand movies in China starting this summer, through an agreement with China’s 'YOU On Demand Holdings Inc'.

According to a Reuters report, Warner Bros will be the first studio to offer films in China through this method, as it has the potential to reach 200 million cable households through YOU On Demand's pay-per-view and video-on-demand platforms.

China is developing methods for consumers to view movies outside the cinema in a lawful fashion, said Jim Wuthrich, president of Warner Bros' International Home Video and Digital Distribution.

Foreign movies in China are available through a quota system that limits the number of movies screened each year.

Millions have been robbed from Hollywood studios and music production companies through video piracy in the world's most populus country.

Strict media rules in China also disallow foreign studios from having their own channels.

I'm excited for the Chinese consumers that will be able to experience and enjoy the very best content that Hollywood has to offer through the YOU On Demand platform, said project Chief Executive Shane McMahon.