Netflix is already the biggest distributor of online video streaming in the world, as well as in the United Sates. But there have been a few specific territories that it had not been able to break into, in the past.
All of that may be a thing of the past now that Netflix is preparing to work out a deal with a China partner that will bring its streaming buffet content to the most populous country in the world, according to Forbes. But those in the industry, as well as citizens in the China market, will not have an easy to road to go down if they want to cash in on the Netflix offerings.
Netflix has been trying for months now to break into the China market, and it has been a very tough road for them to go down so far with China’s strict rules and parameters set on their online content. It has been such a tumultuous road so far that Netflix has been trying to build relationships with corporate partners and media companies in China just to get their streaming service to the table.
— William Albano 艾惟 (@NiuB) August 4, 2016
It appears that all of Netflix’s hard work has paid off, at least with early reports coming out for a possible deal between China’s LeEco and Netflix. It appears as though this might be a merger for streaming content in China with a joint venture between the two companies, which would benefit both in China if it comes to fruition.
Liu Hong, co-founder and vice chairman of LeEco, spoke very highly of the possible merger between his company and Netflix in the China market.
“We are planning a very significant cooperation with Netflix,” Hung told reporters in Beijing on Tuesday. “Details will be announced in the third quarter.”
As most people may have already realized, the third quarter is already here and the announcement from LeEco and Netflix is imminent at this point. It was also the last big stronghold that Netflix has yet to conquer in the world, expanding its reach to a global empire.
In the U.S., Netflix has long been the biggest streaming video buffet service across the nation, but it has had its work cut out for it from other major competitors like Amazon Prime, Hulu, HBO Go, and other monthly video buffet streaming companies. Netflix has not seen much competition from the video a-la carte streamers such as Vudu, M-Go, and other companies that sell or rent streaming video rights.
It might also be worth noting that other major companies across the world have also been able to break into the video streaming market, but none have grown to the enormous heights that Netflix has, especially this year following the great Netflix expansion last spring.
It is unclear at this time what the news about Alibaba acquiring Netflix might do to this potential deal to enter the China market through a cooperative business for online video streaming. News about the Alibaba potential buyout of Netflix broke last Friday, but there has been no word yet if there is any real credible evidence behind that and it seems to just be fizzling out as a rumor in the financial sector.
Nevertheless, people have been flocking to the Netflix stock lately and trying to scoop up what they can, even though shares for Netflix have been slightly down. But the expansion of Netflix into China could be far-reaching and potentially send the Netflix stock soaring.
A friend is someone you’d do anything for. pic.twitter.com/DT78j45v7Z
— Stranger Things (@Stranger_Things) August 7, 2016
Netflix has been on a quite a roll here lately, not just with expanding their global market share but with expanding their domestic reach with a plethora of original programming coming to the streaming platform.
— TrekCore (@TrekCore) August 7, 2016
[Photo by Stephen Shugerman/Getty Images for Netflix]