Netflix tried to get into the Chinese market for many media years, but now the company has announced the closure of all market development plans in connection with the very stringent rules regarding the content. Instead, now the streaming video service plans “to license content for existing service providers in China,” said Netflix in letter to shareholders published together with the financial report for the third quarter. The company expects that by such license agreements, it will receive a moderate income.
The rules regarding foreign services and media in China is quite hard: many imported TV shows and movies are censored before appearing in the public domain. That is why Netflix would be extremely difficult to launch its service in the country, it would have to spend years creating content library, which would be consistent with China’s strict requirements. However, China as the most populous country in the world is the economic opportunity that can not offer any other country. “We still have a long-term intention to serve the Chinese population directly, and we hope to eventually launch our service in China,” – said at the end of the letter to shareholders
These changes in the plans are not unexpected, given the recent comments of top managers Netflix. For example, CEO Reed Hastings (Reed Hastings) earlier this month, said the festival New Yorker TechFest, to launch in China “does not look good”, recalling the problems that have been exposed Apple’s and Disney trying to bring American films into the Chinese market. “We are really focused on the rest of the world. We opened many opportunities in India, Poland, Turkey, Latin America and Vietnam, “ – added Hastings
In January, Netflix was both started in 130 countries around the world, thus becoming available in a total of 190 countries. Now, there is no possibility to use the service only in North Korea, Syria, China, and the Crimea.