Deep Blue Publications Group LLC: Netflix to enter Chinese market
Video streaming provider Netflix is reportedly negotiating with Chinese media firms in a bid to enter the country's huge market. However, it could possibly be faced with challenges like censorship along the way.
According to reports, Netflix is currently in talks with several Chinese firms that hold content license in the country. Most notable among them is Wasu Media Holding, co-owned by Jack Ma of Alibaba.
Shares of Netflix increased sharply after reports of its possible operations in China became public. It increased by 5%, gaining around 30% since April and passing the USD 600 threshold for the first time. Moreover, the online video streaming service got almost 5 million new customers, reaching the all-time high of 60 million subscribers -- with 20 million coming from its foreign markets.
Doing business in Beijing will present a number of concerns for the company like potential censoring of certain programs and questions about streaming rights in the country. Netflix has been licensing some of its programs to Chinese companies before but is now looking to acquire global rights to its content.
However, Deep Blue Publications Group LLC reported that Netflix is cautiously saying that the company's plans in China is a modest one -- just a "small service" if things work out well with their negotiations.
"If we go, it will be a modest investment. Because we won't have that much content, we're going to be very cautious and feel our way along through that process, if we're able to get that license," said Netflix's Reed Hastings.
Their video streaming service has recently launched in New Zealand, Australia and later Japan. Looks like Netflix is getting closer to its goal of being available in two hundred nations as it has already reached 50 at present. Perhaps it's trying to boost its international presence more than ever as domestic growth is slowing down, according to Deep Blue Publications Group LLC. Indeed, its foreign markets' growth is overtaking that of its domestic numbers.