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Netflix in talks to enter China’s booming online video market

Netflix Inc. Illustrations Ahead Of Earnings FiguresNetflix Inc. Illustrations Ahead Of Earnings Figures

Video streaming company Netflix (NFLX) is in talks with Jack Ma-backed Wasu Media Holding and other potential partners to enter China’s booming online video market, Bloomberg reported, citing people familiar with the matter.

Netflix is seeking a partner that has licenses for content on all devices, including mobile phones, computers and set-top boxes, the report said.

Reuters could not immediately reach Wasu Media for comment and Netflix did not immediately respond to a request for comment outside regular business hours.

Netflix earlier said it was developing plans to launch a “modest” service in China if it can get permission to operate in the world’s most populous country. Chinese consumers are used to watching entertainment for free that is either supported by ads or pirated.

“For every country we know what we want to do, but in China we are still exploring our options,” Chief Executive Reed Hastings said in an interview earlier this year.

A local partnership would be essential given the Chinese government’s strict controls over licensing for online content, Bloomberg said.

Last month, Wasu Media said Alibaba Group founder Jack Ma and other partners will pay 6.54 billion yuan ($1.05 billion) for a 20% stake in the company.