Netflix and iQiyi reached a content licensing agreement to officially enter China

[HC360] On the evening of April 25th, Beijing time, Netflix (152.16, 8.33, 5.79%), a US streaming video service provider, announced on Tuesday that it had reached a content licensing agreement with iQiyi. In the future, Netflix will introduce its original content to the Chinese market.

NetflixCEO Reed Hastings said earlier this year that it plans to launch its streaming video service in the Chinese market, and negotiations with Chinese regulators have made progress. However, due to strict data storage regulations and regulatory review of foreign content, Netflix has been slow to enter the Chinese market. Hastings also said in October last year that it is unlikely to provide streaming services directly in China.

Earlier in the day, the US authoritative film and magazine magazine Variety reported that Netflix had a content licensing agreement with China's local streaming service provider, iQiyi. Subsequently, Netflix gave confirmation. A Netflix spokesperson said that the content broadcast time in the Chinese market will coincide with other regions.

iQiyi is one of the largest streaming service providers in China, funded by search giant Baidu (186.99, 6.96, 3.87%). In February of this year, iQiyi announced the completion of a $1.53 billion convertible bond subscription. The main subscribers were Baidu, Gaochun Capital, Boyu Capital, Runliangtai Fund, IDG Capital, Guangji Capital, Sequoia Capital, etc. Among them, Baidu subscribed for 300 million US dollars.

Netflix had earlier this month predicted that it would add 3.2 million subscribers in the second quarter of this year, well above analysts' expectations of 2.4 million.

Netflix also announced yesterday that it will raise 1 billion euros (about 1.08 billion US dollars) through the issuance of senior bonds. Financing proceeds will be used primarily for general corporate purposes, including content acquisitions, capital expenditures, investments, working capital, and potential mergers and acquisitions and strategic transactions.

Editor in charge: Song Bingjie