Netflix throws the towel in on China

[ahojunk]

Netflix throws the towel in on China

The People's Republic of China is proving too difficult a regulatory minefield for the company to navigate, it said in a letter to shareholders.

October 18, 20169:59 PM PDT
Daniel Van Boom

Earlier this year, Netflix launched in pretty much every country -- except China. That hasn't changed 10 months later, and it looks like it won't.

The company on Monday told shareholders that it's ditching efforts to bring its popular streaming service to the People's Republic, the world's most populous nation. Instead, it'll sell its shows, like "Narcos" and "Daredevil", to Chinese media companies.

"The regulatory environment for foreign digital content services in China has become challenging," the report read. "We now plan to license content to existing online service providers in China rather than operate our own service in China in the near term."

Netflix certainly isn't the only company to have regulatory troubles in China, a country that can be tough on foreign entities. Apple, for instance, despite investing heavily in China has had many run-ins with the Chinese government and local authorities.

Netflix hasn't completely given up on the country though. It was also noted that, "We still have a long term desire to serve the Chinese people directly, and hope to launch our service in China eventually."

While the company's inability to directly tap into the People's Republic may be a disappointment, it's got plenty to smile about. Netflix on Monday reported skyrocketing profit and membership numbers, causing its shares to soar 19 percent in after-hours trading.

 

[cloud4000]

Uber also left China. It's a tough market to enter. China tightly controls the media, so access will be tough. It already limits how many Hollywood films can screen there.

 

[AndrewJin]

It won't succeed in China.
China has way better ones at home.
In terms of such websites and IT startups, US has no chance and does not do better than China.

 

[TaiShang]

Very smart move on part of the Netflix. Because China has national equals, they will not be able to compete against them. Uber left because they could not catch the very innovative and aggressive-marketing Chinese companies.

The trend will become increasingly so, because China has money, talent and a strong drive for innovation and competition.

US, on the other hand, is becoming a dull, unoriginal, internally corrupt, dysfunctional third world democracy.

In the end, money, talent, innovation stays and thrives in China when foreign competition is reduced to minimum.

Many high-end foreign chemical producers are also throwing towels in China's market as domestic firms are able to produce just as good, if not better.

A similar trend will eventually spread to automotive, which will mostly hurt US interests. Next election cycle, we will probably hear a lot about this in the US.

 

[Rajaraja Chola]

It won't succeed in China.
China has way better ones at home.
In terms of such websites and IT startups, US has no chance and does not do better than China.

For compete you gotta give them a chance. Netflix says govt regulatory clearances are not given or sitten upon. Like I said Chinese govt is involving in protectionism.

 

[AndrewJin]

For compete you gotta give them a chance. Netflix says govt regulatory clearances are not given or sitten upon. Like I said Chinese govt is involving in protectionism.

I have tried it abroad, it's not good compared with all domestic providers.
Uber tried, got defeated and bought by Didi.
Google tried, humiliated by Chinese market before its quitting announcement.
Ebay poured millions of dollars in China, now has nearly zero presence here.
I'm not sure if there is another country in this world could compete with western competitors.
Protectionism is not boycott.

Very smart move on part of the Netflix. Because China has national equals, they will not be able to compete against them. Uber left because they could not catch the very innovative and aggressive-marketing Chinese companies.

The trend will become increasingly so, because China has money, talent and a strong drive for innovation and competition.

US, on the other hand, is becoming a dull, unoriginal, internally corrupt, dysfunctional third world democracy.

In the end, money, talent, innovation stays and thrives in China when foreign competition is reduced to minimum.

Many high-end foreign chemical producers are also throwing towels in China's market as domestic firms are able to produce just as good, if not better.

A similar trend will eventually spread to automotive, which will mostly hurt US interests. Next election cycle, we will probably hear a lot about this in the US.

China has not left behind in the new technological revolution.
It's sad China and nearly all other developing countries lost the chance in the previous rounds.
But thankfully, not this one.
We are now in the very beginning of the new era, many members here refuse to recognise the tendency.
Luckily, we are not.

 

[cloud4000]

US, on the other hand, is becoming a dull, unoriginal, internally corrupt, dysfunctional third world democracy.

More about US decline. People have been saying this for decades. It has yet to happen.

I have tried it abroad, it's not good compared with all domestic providers.

What are you talking about here? Content, service, picture quality, price? Please be more specific.

Uber tried, got defeated and bought by Didi.
Google tried, humiliated by Chinese market before its quitting announcement.
Ebay poured millions of dollars in China, now has nearly zero presence here.
I'm not sure if there is another country in this world could compete with western competitors.
Protectionism is not boycott.

Fine, China is an unique market with unique requirements, and have the benefit of a huge captive market. The question can these Chinese companies compete beyond its borders.

 

[AndrewJin]

More about US decline. People have been saying this for decades. It has yet to happen.



What are you talking about here? Content, service, picture quality, price? Please be more specific.



Fine, China is an unique market with unique requirements, and have the benefit of a huge captive market. The question can these Chinese companies compete beyond its borders.

Very few content.
I can't believe an American website provides fewer soapies and movies from hollywood than Chinese websites which are more willing to buy content.

US, on the other hand, is becoming a dull, unoriginal, internally corrupt, dysfunctional third world democracy.

well, the Trump/Hillary demoncrazy can truly live friendly with beef banning demoncrazy.

 

[cloud4000]

Very few content.
I can't believe an American website provides fewer soapies and movies from hollywood than Chinese websites which are more willing to buy content.

Netflix is becoming a network/studio rather than library or repository for two reasons: 1) buying content is expensive 2) need to differentiate from competitors. For China, Netflix will just sell its content to sites there.

[

well, the Trump/Hillary demoncrazy can truly live friendly with beef banning demoncrazy.

Yes, China lecturing about democracy. Thanks.

 

[qwerrty]

For compete you gotta give them a chance. Netflix says govt regulatory clearances are not given or sitten upon. Like I said Chinese govt is involving in protectionism.

only part true. the real reasons are because they are very very late coming to china and their offering is nothing special and expensive. alibaba, tencent, letv, baidu, etc.. has nearly all the content that netflix has and they offer 'em for free with a few ads or a few dollars for premium. those companies been doing that many years now

 

[Rajaraja Chola]

I have tried it abroad, it's not good compared with all domestic providers.
Uber tried, got defeated and bought by Didi.
Google tried, humiliated by Chinese market before its quitting announcement.
Ebay poured millions of dollars in China, now has nearly zero presence here.
I'm not sure if there is another country in this world could compete with western competitors.
Protectionism is not boycott.

You dont quite understand. If someone is offering you cheaper services then naturally we tend to go for it. And that is not Boycott. I admit Uber got defeated by didi. And Alibaba held e-bay to oblivion. I dont know if Amazon is operating from China. But tech companies like Google, now Netflix, and many IT companies from India, never got a chance to compete. In China its not easy to get regulatory approval. And all normal websites from other countries are banned. That's not really a way to compete.

Give all tech companies or internet streaming companies an even standing. Of course they will employ Chinese staff and local language. That has been a common grouse among all companies trying to get a hold in China.

 

[Lure]

Give all tech companies or internet streaming companies an even standing. Of course they will employ Chinese staff and local language. That has been a common grouse among all companies trying to get a hold in China.

This is not about giving a fair chance to non Chinese tech companies. This is about the product that they are selling. There is an offical censorship in media made by Chinese government. It's limits are pretty much pre determined. So they are not acting as it please them. If one acts according to those rules, then there is no problem. If not then you can't air your product in China.

Now the content that US bans or auto-censors doesn't coincide completely. Sometimes a media can be allowed in US and censored in China or sometimes a piece can be a norm in Chinese society but can be offending to Western audience. Just like Islamic countries are banning **** or US taking down online marijuana sellers, China has every right to censor.

It's also arguable that Western ideals are not universal an other countries or governments or countries might have different ideals. West should get used to it before this nonsense leads to third world war.

They are so used to ruling the World and dictating their values and ideals. They can't even grasp the growing and increasing uniqueness of other nations. In the end there is only two sides in this discussion.

Do you want a globalization that promotes a Western that destroys your own culture, values and ideals? Or do you oppose it? It's as simple as that. And no, just because you oppose globalization you don't become North Korea. Opposing every type of international relation is extremely different then opposing globalization.

Brexit was a manifestation for the opposition to globalization. They sad we don't your immigrants or refugees to EU. China sayası I don't want your movies or I will allow it for a limited amount and I will choose which movies I will allow. Their people are happy with it. You don't see mass protests. You only see occasional Chinese liberals like Ai WeiWei writing articles in western media. They are not even one percent in China. So the rest of the world should deal with it.

 

[lcloo]

When in Rome, act like a Roman. Accept China's law and regulation, you are in.

However, if a foreign company persistently want to follow their home country free wheeling practices and pay no regard to following Chinese regulations, they might just as well forget about entering China market.

 

[Rajaraja Chola]

This is not about giving a fair chance to non Chinese tech companies. This is about the product that they are selling. There is an offical censorship in media made by Chinese government. It's limits are pretty much pre determined. So they are not acting as it please them. If one acts according to those rules, then there is no problem. If not then you can't air your product in China.

Now the content that US bans or auto-censors doesn't coincide completely. Sometimes a media can be allowed in US and censored in China or sometimes a piece can be a norm in Chinese society but can be offending to Western audience. Just like Islamic countries are banning **** or US taking down online marijuana sellers, China has every right to censor.

It's also arguable that Western ideals are not universal an other countries or governments or countries might have different ideals. West should get used to it before this nonsense leads to third world war.

They are so used to ruling the World and dictating their values and ideals. They can't even grasp the growing and increasing uniqueness of other nations. In the end there is only two sides in this discussion.

Do you want a globalization that promotes a Western that destroys your own culture, values and ideals? Or do you oppose it? It's as simple as that. And no, just because you oppose globalization you don't become North Korea. Opposing every type of international relation is extremely different then opposing globalization.

Brexit was a manifestation for the opposition to globalization. They sad we don't your immigrants or refugees to EU. China sayası I don't want your movies or I will allow it for a limited amount and I will choose which movies I will allow. Their people are happy with it. You don't see mass protests. You only see occasional Chinese liberals like Ai WeiWei writing articles in western media. They are not even one percent in China. So the rest of the world should deal with it.

Am not talking of western ideals. I was not able to access a basic tech website based in India when I visited China for giving an installation. I was shocked. It was a blanket ban. I understand the rules of the land. There are reasons Indians are coping up and integrating successfully in different countries. I respect Chinese dishes, their hard workingness. We see with inspiration they have become an economic giant. But when the world provides equal platform for Chinese companies to compete, they should also do it in their country. They sit on approvals for years. Ask Indian Pharmaceutical companies.

 

[Chinese-Dragon]

What are you talking about here? Content, service, picture quality, price? Please be more specific.

The only thing that counts in China, providing the best services to a Chinese-speaking population.

Obviously Google is a global powerhouse for example, which is why it utterly dominates in countries like India despite being American.

But they could not compete with Baidu in terms of Chinese-language search, and that's what counts in a country where less than 1% of the population has any degree of English fluency. (Hence their 1-2% market share in China currently).

Fine, China is an unique market with unique requirements, and have the benefit of a huge captive market. The question can these Chinese companies compete beyond its borders.

No, for the same reason as above. Chinese media will find it very difficult to compete overseas due to it being in the Chinese language.

Chinese tech companies on the other hand will do fine, like Lenovo (number 1 in the global PC market), Huawei, Xiaomi, OnePlus, etc. Not to mention appliances companies like Haier (again number 1 in the global market).