Netflix has decided to enter the market of the People’s Republic of China.
Netflix has decided to enter the market of the People’s Republic of China. Netflix news reported that the management of the company is negotiating with a group of Chinese media enterprises to study the means by which it can introduce its video service for the residents of one of the largest economy in the world.
Netflix news today informed that the executives have held meetings with a number of media companies, such as Wasu Media Holding, BesTV New Media, and Alibaba Group Holding Limited. Market sources have reported that its initiative is welcomed by the stock market, as its share price has increased by more than 4%. This development is a part of its efforts to expand its operations into 200 countries by the end of next year.
Netflix intends to grow in the international market after witnessing slow growth in the United States. It currently operates in more than 50 different states. Experts stated that its operations in the Chinese market would suffer from a number of obstacles, such as issues regarding the censorship of programs and ownerships of rights. Such sensitive conditions require thorough considerations and planning.
Netflix Breaking news affirmed that the media-streaming giant seeks international rights when it signs content deals. It has previously permitted some Chinese firms to access its famous and trending content. House of Cards, for example, is already popular on a streaming website called Sohu.com. Media sources have highlighted that some advertisement supported video platforms in China offer a programming fee that is charged by Netflix in one of the largest economies of the world.
Company sources revealed that if the Chinese authorities grant license to the organization, then it intends to launch a small service for its Chinese customers. The Chinese laws require it to acquire a number of licenses to telecast media content, including root level license and per video basis license. An official of the organization, Ted Sarandos, has stated that Netflix lacks the experience of collaborating with Chinese companies working in the Chinese conditions would not be easy.
The shows of Netflix are not new for to Chinese people, as it produced series, called ‘Orange is the New Black’, which is already telecasted on the country’s video streaming service, Youku. Industry experts presented their view that the streaming giant has to take a number of measures to build its position in the country’s media market. The Chinese government’s decision would determine its future in the second largest economy of the world.