Netflix details ‘modest’ move in China

Further details have emerged of the programming that streaming giant Netflix will take to China, following its breakthrough deal with local player iQiyi this week.

Stranger Things will be among a limited number of Netflix originals offered in China

The country’s strict media regulations have so far blocked Netflix from gaining access to a market of a billion people as part of its global roll-out.

But Netflix has reached an agreement with iQiyi for its original content to be made available on the Beijing-based firm’s platform at the same time it is launched around the world.

IQiyi, which is backed by search giant Baidu, will offer what Netflix has labelled a “subset” of its originals, including dramas Stranger Things and Black Mirror.

The streamer described expectations around the deal as “modest in scope” and added that the arrangement would be “subject to the relevant regulations on online streaming of imported drama and film content in China.”

IQiyi is moving from an ad-supported model to a Netflix-style subscription business as it competes with other giants in the local VoD space such as Tencent and Alibaba.

China’s censorship rules and tight control over programming have been holding back Netflix from launching in the country for several years. In 2015, chief content officer Ted Sarandos said the streamer was keen to launch in China but played down the idea it would look for a local partnership.

“It’s unlikely that we would definitely pursue a local partner model as a strategy,” he said. “These ventures become very complex and very difficult to manage, and ultimately it’s difficult to be successful.”

The service subsequently rolled out in 130 countries at the start of 2016 but China was not among them. CEO Reed Hastings, however, said Netflix remained intent on having a presence in the country in the future.

By October last year those plans seemed to have been abandoned due to a “challenging regulatory environment.”

Hastings said at the time: “Disney, which is very good in China, had their movie service shut down. Apple, which is very good in China, had their movie service closed down. It doesn’t look good.”