The first studio to announce such a strategy was Time Warner, which said in August that it planned to start releasing cheap DVDs in China in an attempt to fight piracy.
Studios such as Time Warner and Fox have come to the realization that if they don't make such low-priced offerings to the people of China, they won't make any sales at all. Charging $1.25 to $3.00 per disc and selling a few thousand movies is certainly better than (nearly) nothing, which is what they were making before.
