Netflix may have just secured a foothold in the world's second-largest consumer market but that could be a non-event, for now.
The streaming giant announced it had clinched a licensing deal with iQiyi, a Chinese video platform, but this could be largely "immaterial," an analyst said. IQiyi counts Chinese search company Baidu as a parent.
"(T)his is probably going to be immaterial based on other similar deals in the region," Constellation Research Principal Analyst Ray Wang told CNBC's "The Rundown."
"The question is what kind of cut does Netflix get. We don't think it's going to be much," Wang added.
Netflix has attempted to break into the China market in the past, but has acknowledged the "regulatory environment" was "challenging" in a letter to shareholders last year. The company also said it would rely on licensing content to existing streaming platforms in China instead, adding it expected licensing revenues to be "modest."