Country Report
Netflix is a video steaming company that delivers on demand movies and shows to
consumers. The company charges a monthly fee to watch unlimited shows on their platform. We
would be exporting the whole site itself to China. China is one of the only countries in the world
to not have Netflix. Netflix was founded August 1997 in California by Marc Randolph and Reed
Hastings. Netflix started a monthly subscription idea in September of 1999. They then dropped a
one DVD rental model in the early 2000s. Since then Netflix has built a reputation of flat-fee
unlimited rentals with zero late fees, shipping and handling fees, due dates, or per-title rental
fees. After paying close attention to YouTube, and seeing how popular the streaming services
were doing, Netflix decided with a streaming concept instead. This streaming project was
completed in 2007. Netflix is a publicly owned company with a market price of $422.96 as of
April 19. The top institutional holder is
Capital Research Global Investors
owning ~38 million shares. The top
mutual fund holder is Growth Fund of
America Inc owning ~29 million
shares. The key departments for Netflix
are the functional groups for online and
offline operations, geographical
divisions for managing markets, and the divisions for product and operation types. In all Netflix
has ~7,100 employees but that number is growing daily with the growth that Netflix is seeing.
China’s political and legal climate are very different than others around the world. China
is a single party state that is governed by the Communist Party of China also known as the CPC.
There are eight other political parties, but none are allowed to challenge the CPC. China believe
that because they have this single party system, they are able to be more organized and adapt to
market trends. The legal climate in China not great. The country has a definite corruption
problem. They have also always been known for having very relaxed labor laws. Also, in China
there is a clear problem with being ethical about how they treat their workers due to the
undeveloped economy. At this moment no regulations or legislative changes are likely to occur
due to the communist party still controlling. However, with more light being brought on their
flaws it could change in upcoming years. The target market does have access to television,
internet, mobile phones, and many other devices that they can use Netflix on. China is a
developing country and has a big focus on internet/television. Thus, making Netflix’s integration
in China easy. China is the leading country for social media and development of artificial
