Market-Entry Risk Assessment: Netflix Streaming in Mainland China

Netflix's streaming service is available in almost every country, with mainland China the most notable exception. If Netflix decided to expand there, what risks would it take on? ```hint Follow the business model Think about what makes Netflix valuable elsewhere (its own catalog, one service released worldwide, direct billing and member data) and ask which of those would survive the rules and the market there. ``` ### Clarifying Questions - Is the plan a Netflix-branded service run directly, a joint venture with a licensed local company, or licensing Netflix content to existing local platforms? - Is the goal subscriber and revenue growth, or something else, such as access to Chinese productions and talent for the global catalog? - Do you want only the risks, or also a recommendation on whether and how to enter? ### What a Strong Answer Covers - Risks grouped into clear categories rather than a flat list, covering rules, content, competition, operations and reputation - How each risk hits Netflix's specific model, not just any foreign company entering the market - A view of likelihood and severity, naming the few risks that would decide the call - Mitigations or alternative entry modes that change the risk profile, and what each gives up - Spillover effects on Netflix's business and brand in other countries ### Follow-up Questions - Which single risk would make you recommend against direct entry, and what evidence would change your mind? - How does a licensing-only approach change the list of risks? - If Netflix entered and regulators later ordered several of its originals removed, what would you do?