Netflix is in talks to enter China’s booming online video market

An USB key with the logo of Netflix, the American provider of on-demand Internet streaming media, is seen in this illustration photo, in Paris September 15, 2014. REUTERS/Gonzalo Fuentes Thomson ReutersAn USB key with the logo of Netflix the American provider of on-demand Internet streaming media is seen in Paris

(Reuters) – Video streaming company Netflix is in talks with Jack Ma-backed Wasu Media and other potential partners to enter China’s booming online video market, Bloomberg reported, citing people familiar with the matter.

Netflix is seeking a partner that has licenses for content on all devices, including mobile phones, computers and set-top boxes, the report said.

Reuters could not immediately reach Wasu Media for comment and Netflix did not immediately respond to a request for comment outside regular business hours.

Netflix earlier said it was developing plans to launch a « modest » service in China if it can get permission to operate in the world’s most populous country. Chinese consumers are used to watching entertainment for free that is either supported by ads or pirated.

« For every country we know what we want to do, but in China we are still exploring our options, » Chief Executive Reed Hastings said in an interview earlier this year.

A local partnership would be essential given the Chinese government’s strict controls over licensing for online content, Bloomberg said.

Last month, Wasu Media said Alibaba founder Jack Ma and other partners will pay 6.54 billion yuan ($1.05 billion) for a 20 percent stake in the company.

(Editing by Gopakumar Warrier)

Read the original article on Reuters. Copyright 2015. Follow Reuters on Twitter.

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