ByMark J. Guillen, writer at
Netflix will face difficult challenges if it plans to expand in the Chinese region this year.

Netflix Inc. announced in its keynote at the CES 2016 in Las Vegas regarding the expansion of services in 130 countries simultaneously as a part of a plan to achieve global domination. The company wants to be ‘everywhere’, as it aims to launch services to almost every country in the world by the end of 2016. However, it has missed on one of the most important markets in the industry, China.

Netflix introduced its streaming platform in most parts of Asia except China. This raised several questions whether the company would ever be able to enter the country or not in the coming times.

Netflix’s first original show, House of Cards, was a big success in the country surprisingly, as it managed to secure a sizable audience in the region. After the organization released the second season of House of Cards in 2014, it became the number one American show streamed on Chinese service ‘Sohu’, according to the reports published by The Washington Post.

If the company’s platform succeeds in making a mark amongst the masses in the largest nation across the globe, it will be quite fruitful for it in the long run. Reed Hastings, the CEO of Netflix, announced recently that the video-streaming company is now present in all countries internationally. The glitch lies in the fact that the service is present in regions, such as Syria, North Korea and Crimea, but not operational in China.

Reed Hastings stated while announcing the worldwide expansion, , at the CES in Las Vegas, “In China, you need specific permission from the government to be able to operate, so we’re continuing to work on that and we’re very patient. I think we’re going to be a success there, but it’s going to take some time.”

China is a complicated market. The government has strict rules and controls the content that should be allowed for distribution, or blocked, from the masses. Apart from the government, the competition from local players can be a big challenge as well.

The CEO made it clear that it may take a lot of time to enter the Chinese market, let alone dominating it. It will not be as easy as in other countries for the company to dominate. China is a complete market all in its own and other tech companies have learnt how to operate in the region. Hence, in order to succeed and think of this particular market domination, the streaming service will have to play by the ‘local’ rules.


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