Netflix Partnering To Enter China, New Report Says

• According to Chinese news sources, Netflix, Inc. (NASDAQ: NFLX) is preparing an entry to the Chinese market.
• The report added that Netflix will team up with Wanda Group after Alibaba Group Holding Ltd (NYSE: BABA) attempted to form a partnership.
• Netflix has been eyeing the Chinese market but previously failed to obtain the necessary regulatory approval to operating as a foreign media company.

Want China Times reported that Netflix is teaming up with Wanda Group to expand its online video streaming service to China. The publication cited a report by Guangzhou-based 21st Century Business Herald.

Wanda Group is the parent company Wanda Cinemas (the largest cinema operator in China based on total box office revenue in 2014), AMC Entertainment (and by extension AMC Theatres), and other cinema chain operators worldwide. Given its large retail presence, the company lacks a video streaming platform, and a partnership with Netflix "may complete its media portfolio."

Related Link: Why Netflix's Initial Selloff Was 'Correct'

The company's Vice CEO said that it has been discussing details with Netflix since at least late September.

The report added that Alibaba had attempted to secure a deal with Netflix, but the e-commerce giant already operates an online video streaming service, Tmall Box Office. If the reports are true, Alibaba, along with Baidu Inc (ADR) (NASDAQ: BIDU), and Tencent will compete directly with Netflix.

The Wall Street Journal reported in May that Shanghai-based BesTV New Media Co is in talks with Netflix over a partnership.

Shares of Netflix appear to be unaffected by the news report as the stock was trading higher by 0.57 percent at $99.55 late Monday morning.