Alibaba Launching Its Own Streaming Service Is Actually A Good News For Netflix And Here's Why

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Reuters recently reported that Alibaba Group Holding Ltd BABA will be soon launching Netflix, Inc. NFLX like streaming service in China. However, instead of being a bad news, Edmund Lee from Re/Code thinks that this is actually a good news for Netflix.


Lee was on CNBC Monday to explain why he thinks so.

 

Oppurtunity For Netflix


“It was always going to be hard for Netflix to jump into China by itself,” Lee said. “It would have to find some kind of a partner. Partly because you have to have what’s a license buy from the government to do so. It’s easiest to do that with a company that’s already got it.”


Lee continued, “Alibaba is going to have their license and so if they could end up being the partner for Netflix, now whether that means that Alibaba ends up buying some of the content through Netflix or that Netflix becomes another service within the Alibaba overall thing. It still remains to be seen, but that’s the opportunity for Netflix here.”


Jack Ma Is Not Looking To To Take On The U.S.


Lee was asked if he believes in Jack Ma’s stated strategy of creating partnerships not rivalries. He replied, “He has done pretty well so far using that same strategy. I think, he has grown pretty quickly, but through really strategic partnerships, some acquisitions, some just building stuffs on his own.”


“I don’t think he is looking to take on the U.S. so to speak in terms of how a lot of us have been painting that in the past. And it’s a global marketplace now, it’s that much easier for consumers to buy and sell things across borders and I think that’s the thing that he is trying to take advantage of,” Lee concluded.

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Posted In: CNBCMedia
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