Netflix eyes China, is move good for investors?

By Tomás H. Lucero

According to Fortune, Netflix stock has just soared past $600 as the possibility that it will enter the Chinese market looms. Now the question begs itself. Is this good for investors? Or better yet, is it a good time to buy or sell Netflix stock.

 The increase to $600 represents a 5 percent positive change in the stock price. Netflix stock climbed the market after Bloomberg reported, citing an anonymous source,  that the video streaming company is considering partnering with Chinese companies as a tactic to move into the country’s market.

The fact that Netflix needs to negotiate with a third party before it can start doing business in China might cool off some of the enthusiasm investors are currently showing the company. While it’s certainly true that China has made giant leaps towards becoming a business-friendly country, it has its own rules and regulations nonetheless. Furthermore, Netflix and its potential Chinese partners have to strike a balanced sweet spot, before business can move ahead. Still the market is certainly showing optimism about the possibilities.

Netflix is speaking to various companies that hold content licenses in China. One of these companies is the large Wasu Media Holding Company which is partly owned by Alibaba Group founder, Jack Ma. Netflix has not stated anything conclusive regarding its progress in China, but earlier this year CEO Reed Hastings said that the company was weighing its options in the giant country.

Independent of China, Netflix has 40 million subscribers in the United States and 20 million in other countries. China, of course, as everyone knows, has about 1 billion people with a significant portion of them with access to telecommunications.

Related Story: Netflix Rolls Out User Profiles

Related Story: American Business in China: Dealing with Top Concerns

Like us on Facebook, follow us on Twitter!

Read our latest edition - Business Review USA 


Featured Articles

Top 10 must-read sustainable leadership books for CEOs

As former Unilever boss Paul Polman debuts his new net zero book, we ask – can profit and purpose truly exist? Here are 10 business books to prove they can

Top 20 essential leadership resources for Black executives

To celebrate Black History Month, here are 20 resources for Black leaders – from business books to leadership coaches to business school exec programs

Broadridge study reveals huge impact of AI on C-suite

Broadridge Financial Solutions spoke to 500 C-suite executives from across the globe, many of whom said AI was significantly changing the way they work

PwC's Kathryn Kaminsky – the role of boards on social issues

Leadership & Strategy

Why your business needs a Chief Transformation Officer

Leadership & Strategy

12 top AI and ML trends for the enterprise in 2023 – Dataiku

Technology & AI