Premium video on demand, known as PVODs, are films that are released directly to streaming video platforms and forego their usual debuts in traditional theaters. 

This year, due to the COVID-19 pandemic and the subsequent shutdown of most theaters, many Chinese films, including mega-budget titles, have favored online releases. 

Releasing a mega-budget film that has been in the works for four years to PVOD, totally skipping theaters in China and around the world, was not an easy decision for Filmko, a Chinese studio. 

Filmko's fantasy adventure "Double World" debuted via Chinese streaming service provider iQiyi on July 24. iQiyi members can access the film for 12 yuan (1.7 U.S. dollars) while non-members pay 24 yuan. The film has also been simultaneously released on Netflix in 190 countries.

Starring Henry Liu and Peter Ho, the film is adapted from a video game called Zhengtu. The multiplayer RPG game has been popular since 2007. It is set in an ancient fantasy kingdom that has been split into warring states, where characters learn how to fight and survive.

"The ongoing COVID-19 pandemic has caused many cinemas to close down. Though many cinemas have reopened, they are allowed only 30 percent audience capacity. Judging from the situation, we decided to debut on iQiyi and Netflix," says Qin Wei, general manager of Humble Stone.

Made on a budget of around 43 million U.S. dollars and containing 80 percent special effects, "Double World" is the fifth most expensive new movie ever to premiere on iQiyi's premium video-on-demand platform, and its performance has been impressive. 

It grossed a record-breaking 42 million yuan on iQiyi within three days. On Netflix, it ranked among the top 10 in first-week viewership in more than 50 countries, top 5 in many Asian countries and second in South Korea.  

The news comes as China's cinemas have yet to offer a timeline for total reopening after nearly six months of closure. Humble Stone, Filmko's distribution arm, says the pandemic is not the only reason films go online. 

"We believe PVOD will be a trend for films. Even after the pandemic, a great number of films will not be able to hit cinemas because there're more films than what theaters can handle. So, shifting to online release offers a return to production, and it will also lead to innovations and changes to the industry," says Qin. 

A growing list of films has decided to put aside their box office dreams in favor of an online debut. Xu Zheng's "Lost in Russia" was the first to jump ship in January, with Bytedance nabbing rights for 91 million dollars. Meanwhile, Disney's "Mulan" opted to skip theaters for exclusive release on Disney+. 

The Donnie Yen-starring martial arts comedy "Enter the Fat Dragon," sports drama "Knockout," female-helmed arthouse title "Spring Tide," and Noah Baumbach's Oscar-winner "Marriage Story" have all gone straight to streaming via iQiyi's PVOD platform. 

There are no guarantees of box office successes, but PVOD seems to be a tangible way for producers to recover their investment.