Netflix is planning to enter four more markets in Asia. (Photo : Reuters)
After the recent geo-related issues that dogged America's Netflix Inc. prior to its Oceania launch, the online streaming giant is now preparing itself for a grand Chinese entrance--without a local partner.
Observers of the business strategies that continue to target the massive eastern Asian market will know that even the most established billion-dollar brands only announced their appearance on the Chinese marketplace radar after a domestic relationship was well developed.
The timing of the Netflix decision is also particularly bold, as the Chinese government's censorship officials recently proceeded with further interventions in the realm of overseas-produced media that saw both "Agent Carter" and "Empire" taken down from online streaming sites in the world's largest Internet market.
Hong Kong television shows have also been included inside the crosshairs of China's censors and the global industry awaits April 1, when Beijing's new rules will be implemented; an unnamed Chinese representative said in February that the country's government is "at an early stage in this process."
In an online environment in which Chinese nationals are already unable to view the blocked Web entities of Google Inc., YouTube, Facebook Inc. and Twitter Inc., the Californian streaming company is still not deterred. Netflix's Chief Content Officer (CCO), Ted Sarandos, spoke with reporters at a press event in Shanghai on Monday, maintaining his brand's non-partnership strategy:
"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."
Without a local partner, Netflix will need to obtain a total of eight operating licenses, while Sarandos also said that Netflix is seeking to export Chinese content to the rest of the world.
In addition to licensing issues, Netflix will also need to contend with local rivals, iQiyi and Tencent, which are already dominant in the marketing of foreign-produced shows to Chinese viewers.
