Korea's MK Pictures has signed a deal to provide China's largest internet protocol TV (IPTV) serviceprovider, Zhejiang Huaying Media, with video-on-demand and pay-per-view content.

Under the terms of the deal,MK Pictures will act as the company's exclusive agent for Korean films and willstart providing content from its in-house library following censorship reviewsby the Chinese government.

"With the obtainment oflegitimate distribution channels in China, we are now able to anticipate an expansion of Koreanfilms into the Chinese market," said MK Pictures in a statement.

Zhejiang Huaying Media,which started IPTV testing in 2002, is credited with supplying 500,000subscribing households in 50 main cities including Beijing. According to MK Pictures, the company'ssubscriptions are expected to reach 30 million households by 2010.

The deal comes on the heelsof MK Picture's memorandum of understanding with China's Eastern Dragon and Beijing Polybona for apartnership in the film business, starting with multiplexes.