Netflix recently signed a deal with top Chinese video streaming site iQIYI – owned by internet giant Baidu to carry some of its shows in the Chinese market.
While many view this as a small step, others see it as potentially being the start of something big.
CGTN’s Mark Niu reports.
Netflix looks to expand streaming services into Chinese marketNetflix recently signed a deal with top Chinese video streaming site iQIYI – owned by internet giant Baidu to carry some of its shows in the Chinese market. While many view this as a small step, others see it as potentially being the start of something big. CGTN’s Mark Niu reports.
Netflix is the most popular streaming service in the U.S. with more than 52 million households watching last year compared to second place Amazon with only half that audience.
But the growth rate of U.S. subscribers has declined, leading to greater emphasis on acquiring international customers and now the deal with Chinese streaming site iQIYI.
“Their strategy has been to grow quickly, and generally they’ve been pretty successful in that they are present in every major market in the world other than China, although now with this licensing deal they do appear now to be gaining a foothold in the Chinese market as well. The size of the Chinese market is of course remarkable and potentially important to Netflix. And it’s also growing in that the companies in China are moving from an advertising-based model to a more subscription-based model,” ;Thomas Altura of San Jose State University’s School of Management said.
Netflix declined to interviewed, but did put out a statement that said expectations of the deal are modest in scope. The statement also said ‘Our cooperation will be subject to the relevant regulations on online streaming of imported drama and film content in China.’
Netflix’s political drama House of Cards actually become a huge hit two years ago in China when it was shown on online video-service Sohu. But the show was pulled.
Netflix says it signed a content licensing agreement with iQIYI for a subset of its original series like the science-fiction horror show Stranger Things and the hi-tech futuristic series Black Mirror.
Jamaal Finkley talks about Netflix’s expansion into China
For more on Netflix’s expansion into China and their general strategy going forward, CGTN’s Rachelle Akuffo spoke with Jamaal Finkley, president of the Hollywood Post and Founder of BlackTreeTV.