Netflix Inc., the video streaming service, is in talks with a media firm backed by Jack Ma, as well as other likely partners in China.
The media firm is none other than Wasu Media Holding Co., in which Jack Ma-owned Alibaba has a 20 percent stake. Netflix is reportedly looking to foray into the lucrative and burgeoning online video market in China, according to a report.
"Netflix Inc. is in talks with a Chinese media company backed by Jack Ma and other possible partners as it seeks entry into the country's $5.9 billion online video market, according to people familiar with the matter," claimed a Bloomberg report.
The publication's sources also revealed that Netflix has been in talks with Wasu Media Holdings, as well as other local Chinese media companies to forge a long-term partnership.
For those wondering why Netflix is keen on tying up with a Chinese company, it's because of the existing stringent censorship laws in the country pertaining to the online access of content and media. Having a local partner that has content licenses on all devices, such as PCs, tablets, mobile phones, and set-top boxes, would be advantageous to Netflix.
Wasu Media Holdings fits the bill as it is one of the seven companies to have Internet TV licenses from the Chinese State Administration of Press, Publication, Radio, Film and Television (SAPPRFT).
With the Chinese online TV market forecast to grow three times to $18 billion in the next three years, Netflix is on the right track as it sets itself for global expansion.
Netflix's CEO Reed Hastings has already expressed his keenness to expand to 200 countries by the end of 2016 and become a global company.
The company's chief content officer Ted Sarandos told investors recently that Netflix would attempt to "figure out China" as well as how to get there with a partner in tow.
"We're open to all different models to get there eventually, because we want to be fully global," said Sarandos. "And it's a pretty big chunk of the world to have an asterisk."
Photo: Matt Perreault | Flickr
