Netflix, Inc. (NASDAQ:NFLX) is determined that it will not let go off China from its expansion radar. The company’s chief content officer, Ted Sarandos made it clear that they are constantly looking for opportunities to enter China, which reinforces the fact that the company is aiming to grow outside its home, U.S.
Untapped market
The company expanded its footprint in over 130 new markets across the globe to fight off subdued growth in the U.S. However; China remains a dream destination for Netflix due to the region’s potential based on its population. Netflix has failed to enter China mostly due to tight regulations and censorship hurdles. Although its not yet clear as how Netflix will make its headway in the region. The company has been struggling to stay afloat in other Asian countries such as Indonesia and South Korea for similar reasons.
Experts cite lack of local content as main reason behind Netflix’s woes. While revealing content strategy for South Korea, Sarandos, said that they are investing time into studying the preferences of Korean people. The company event went ahead to invest in a new movie “Okja” with the intent to appeal Korean audience. Sarandos hinted that the company is scouting for multiple investment opportunities such as Okja to improve its content in the region.
Encouraging diversity
On the other hand, Netflix’s launch in Indonesia did not go well after Indonesian state telecommunications company PT Telekomunikasi Indonesia banned its streaming service for lack of permit to operate there.
Despite the odds, Sarandos highlighted how Netflix’s effort to expand into different markets would bring diversity to it content versus Hollywood model. He explained that the growth in subscriber base across the world is directly related to casting preferences. Sarandos pointed that both of its series, Marco Polo and Master of None, cast Asian actors that distinguish its content from typical Hollywood casting approach.
