Warner Brothers’ Chinese joint venture company, CAV Warner Home Entertainment Co., will aim to beat DVD pirates in China at their own game, according to Xinhua News Agency feed.

The company, which is the only sino-foreign JV company licensed to sell audio-visual products in China, says that it will compete head on with pirates by matching them in price while providing significantly higher quality products and faster release.

This follows on from Warner pulling out of their Chinese cinemas venture and making a decision to distribute content directly via DVD (see my Nov 10 entry).

CAV Warner will also distribute locally produced Chinese-made films throughout China, both a signficant step towards a localisation strategy, and an attempt to further curb losses from film pirates recording movies in US cinemas and sending to China for bootleg production and distribution.

According to director Jia Zhangke, whose film Still Life Warner are distributing, problems with DVD piracy are compounded by the Chinese central government’s restriction on the number of foreign films allowed to be imported each year. While I don’t condone restrictions on any imports, it is interesting to see a local director come out in support of increasing imports…