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Netflix in talks with Chinese companies to enter a $6B online video market

Netflix is in constant talks with the Chinese Media companies as it plans to explore the business in China. Netflix is trying to explore the way with which it can bring a streaming service to China. This idea has a great potential to increase the subscriber count on Netflix. However, Censorship may come up as a big issue for the company.netflix

Wasu Media Holding has been contacted by Netflix for the purpose with a backing of Jack Ma, the executive chairman of Alibaba Group Holding and BesTV New Media. It is a media group based in Shanghai. A few other Chinese companies have been contacted by Netflix to inquire about the licenses to be obtained for operating streaming television services in the country.

The shares of Netflix increased 4.5 percent to $613.25 after the news that had been reported by Bloomberg. Netflix has serious plans to expand to at least 200 countries by the fiscal end of the year 2016. The company is growing much faster than it anticipated in the recent past. The talks with Chinese companies is the part of reaching the target set by the company.

Netflix wants to register its presence in China and then keep expanding to various nations in the world. The growth of the company has slowed down in the US and hence Netflix is seeking a refuge in its plan to expand to various other nations.

Netflix knows the challenges it might face while operating it in China. One such challenge is the censorship of the programming available on Netflix. Another one is the limited surety about whether Netflix can own the rights to stream programs in the country. The company has already provided some of its original content like “House of Cards to other companies in China. This show has already been very popular on the website Sohu.com.

Some of the ad-supported video sites in China offer free programming of the content on Netflix that is available in the US. Netflix made it clear that the company is looking to start a small service in China if everything works out well. According to Reed Hastings, the chief executive of Netflix stated, “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.”

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About David Mayor

Writer and editor of The Next Digit Media, he takes care of iOS, Apple, Mac and other gadgets. He worked at Apple Inc, before joining to TND Media. He was graduated in Bachelor of Journalism & Mass Communication Degree from Cambridge University. All posts by David

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