14 DAY TRIAL // It seems that Netflix is ready to take a big step forward by entering the online video market in China, as reports show that the company is currently negotiating with media enterprises like Wasu Media Holding Co.
Inside sources have revealed for Bloomberg that the media provider has serious plans for global expansion as it attempts to widen its reach on consumers by targeting Asia’s biggest streaming markets.
Since the Chinese government is very strict about compliance with its rigorous regulations regarding the content that reaches users, Netflix is currently looking into concluding a partnership with a local company and the report shows that it is very likely to team up Wasu Media Holding Co. which just happens to be backed by Alibaba founder, Jack Ma.
It was a known fact that Netfix had its eyes on China
The news is not an absolute surprise given that Netflix Chief Executive Reed Hastings had made previous declarations expressing his desire to expand in 200 countries in the years to come. He had labelled the leap on the Chinese market as a "modest" one given that they needed a lot of approvals and permissions from the government.
Since China is a bit reluctant when it comes to foreign enterprises making their way to its market, it is only natural for Netflix to want to take things easily and take precautions against any possible conflicts that might arise from breaching the strict rules.
Although the company had unveiled its international expansion plans at the beginning of the year, no one was expecting it to undertake the development process so rapidly and to start with one of the giants, given that China’s entertainment industry is already saturated.
If Netflix does not play its cards well, it is very likely that it will end up like other American companies, say Google or YouTube, which, dazzled by the impressive number of consumers, took the opportunity but failed to satisfy the unpredictable Chinese market.