ByMark J. Guillen, writer at
There are big challenges lying ahead of Netflix amid China expansion reports.

Netflix, Inc. was on a historical high when the market closed last week and Netflix stocks were trading at a high $618 on Wednesday amid the reports of its expansion in the Chinese market. The company wants to begin operation in the largest economy, China, despite of recent quick expansions in Cuba, Australia, and New Zealand.

The company is not holding back on spreading its online video content platform in every corner of the world. However, regardless of the company’s plan to expand in China, it will not be easy for the streaming giant to make its way in the market.

Due to many domestic problems of which censorship is the main, Netflix will find it quite difficult to enter or penetrate in the Chinese market. It is in talks with many online Chinese companies and broadcasters to bring its service in the country. The Chinese e-commerce giant, Alibaba, supports one of the partnered companies. However, it is still unknown whether these talks and negotiations are bringing any significant result yet for the company or not.

Many analysts and experts believe that it will not be a ‘piece of cake’ for the streaming giant. According to Michael Pachter, analyst at Wedbush Securities, explains on the chances to do business in China as – “I think this is five years away from happening — not one. The market reaction to this is premature at best and ridiculous at worst.”

So far, Netflix has declined to comment on the news, which linked the streaming giant and Wasu Media that is backed by Alibaba. However, the spokeswoman of the company assured that the streaming giant will take time to make its way in the market by exploring the modest options in China and provide the largest populated country with the best that they could offer.

Pachter further added, “The value Netflix adds to the Chinese audience is giving them access to content they can actually see.”

Netflix is growing throughout the world with immense pace. It is quite determined to enter in not only the Chinese market but all other markets as well that it can target. The corporate giant in China would mean that it, along with its partners, would help in eliminating piracy from the region with the help of government.

Already, the Chinese population loves the online video platforms that provide free services despite of being ad supported, hence immense growth in such platforms is seen as well.

Regardless of the fact that it will be difficult for the streaming giant to enter the Chinese market, analysts see it to develop a very good business in the region when the time is right.


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