Netflix Eyes Entering The China Market On Its Own
Netflix, a U.S. based video service provider, is likely to venture into the Chinese market without partnering with any local company, a move that will make it hard for the company to conduct their business in China which has the biggest internet market worldwide and its know by many it for its strict regulation and its censorship.
Popular for its political drama series “House of Cards” which is currently is in its 3rd season, Netflix is looking at exporting Chinese content from China to the rest of the world, said Ted Sarandos, Netflix’s Chief Content Officer while speaking to reporters on Monday at a talk in Shanghai.
There has been an increase in the number of entertaining companies which are looking at eating a slice of China’s entertainment market which is quickly growing and Netflix’s move comes as no surprise to many analysts in the industry.
The company’s decision to enter the market alone is considered risky by many given that many U.S. based companies have had trouble operating and conducting their business in China, for example Facebook, Youtube, Google Inc and Twitter have all been blocked in China.
"It's unlikely that we would definitely pursue (a local partner model) as a strategy... These ventures become very complex and very difficult to manage, and ultimately difficult to be successful," said Sarandos.
Netflix entering the Chinese market on its own means that it will have to obtain a number of operating licenses something which the company has admitted will be a potential hold-up in their quest to enter the Chinese market.
Netflix will be competing with other movie and streaming services in China such as Tencent Holdings Ltd as well as Alibaba Group Holding Ltd.