Week 2

Since its inception in 1997, Netflix has transformed from an online DVD rental service to a global streaming giant. In 2000, Netflix introduced a personalised movie recommendation system to further enhance the user experience. Netflix now has 283 million paying members worldwide, covering more than 190 countries and catering to different user preferences with a diverse range of TV series, movies, and game content (2024).

However, it is difficult for Chinese viewers to use Netflix. Due to strict overseas content regulation policies, Netflix is unable to offer streaming services directly as it does in other countries, and users can neither access the official website nor use RMB subscriptions. Although Netflix cannot directly access the Chinese market, users have found many ways to do so.

Some viewers have chosen to connect to overseas servers, masquerading as IP addresses in other countries and logging into Netflix directly. In this way, viewers can watch Netflix’s complete content library, but there are some risks. The use of VPN is severely restricted in China, and Netflix sometimes blocks accounts that use fake IPs.

In 2017, Netflix partnered with iQIYI to authorize some of its original content to Chinese viewers. Through this legal approach, subscribers can watch Netflix such as House of Cards and Stranger Things. However, this collaborative project is gradually declining due to copyright and content censorship restrictions.

Some viewers watch Netflix videos through platforms such as Bilibili and Weibo. These videos are usually downloaded, translated and uploaded by bloggers, mostly for free and without a VPN. This approach, while convenient, is unauthorised distribution. Platforms mostly acquiesce for the sake of traffic, and will only take down videos if the copyright holder complains or if a controversy arises.

Some users purchase overseas accounts through third-party channels such as Taobao. This way bypasses VPN restrictions and allows users to legally access Netflix while avoiding technical risks, making it the preferred choice of many viewers. 

Netflix is far ahead of other streaming platforms in terms of original content, and many directors say that Netflix not only gives freedom to creators but also invests high amounts of money. For example, the fourth season of Stranger Things cost $30 million per episode to produce. Lee and Jin (2018) point out that media is influenced by technological, cultural and economic forces. It’s support like this that drives high-quality, diverse content creation. Netflix combines local features with globalised elements to create videos such as Spain’s House of Cards and Korea’s Squid Game. They meet the needs of audiences from different regions and promote intercultural exchange. Netflix also provides a personalised service by analysing user viewing data and using collaborative filtering recommendations to enable users to find their favourite content quickly. This approach has helped Netflix to accurately match subscriber needs and has also significantly increased subscriber stickiness.

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Despite the many challenges Netflix faces in the Chinese market, its high-quality content and technological advantages still leave viewers with expectations. Gómez and Muñoz Larroa (2023), in their analysis of Netflix’s operational strategy in Mexico, point out that Netflix integrates into different cultures and markets by collaborating with local media, creating local content and optimising technology. This experience may also serve as a reference for the Chinese market. Netflix is more than just a streaming company, it’s a bridge to global culture. Although local streaming platforms in China have dominated the market, Netflix still has an advantage. If it can find a suitable cooperation model and understand the needs of Chinese viewers, Netflix may be able to gradually open up the market and bring more high-quality content to Chinese viewers.