Netflix Heads East to China

According to a Bloomberg report, Netflix is in talks to partner with Alibaba founder Jack Ma's Wasu Media to expand into the $5.9 billion Chinese online video market.
3:16 | 05/15/15

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Transcript for Netflix Heads East to China
Okay. It's Friday may fifteenth the markets in New York are open an hour big number this morning. Five point nine billion. That is the size of the online video market in China one of the fastest growing in the world. And now Netflix wants a piece of it. According to Bloomberg report Netflix is in talks with the Chinese media company a partner with it in launching its service on the mainland's. Hi everyone I'm Caroline Costello in New York here with the details as Aaron task editor at large at Yahoo! finance Aaron. Another big move here for Netflix and it's part with a company in China with a pretty famous backer is not right. Yeah that's rate Carolyn watts C media. Is backed by Alibaba. And the executive chairman there is Jack Ma who a lot of American investors are in the got to know the Bob IPO. And I should note that our parent company Yahoo! still owns about 50% of Alibaba I don't think that makes it inflicted talking about Netflix go to China but just wanted to mention. It's a five point nine billion dollar market not huge but how big is the Chinese video market expected to get. Right well five point nine billion is not small either and but it's expected to triple. The next five years and I would also note that five point nine billion that's just the official. Market for online TV there's a huge issue with with pirated. TV and movies on line in China so. You could probably of these double that number today given that you've given how much parties going on so it's a really big opportunity for Netflix and anybody else and get in this market. But in addition to needing a Chinese partner another hurdle for Netflix tiny sensors. Would this be a big concern for Netflix. Yeah that's going to be probably the single biggest obstacle they're gonna have to overcome is the Chinese censorship against any foreign. Own media. Everything that goes into China have to be vetted by the sensors. Right now house of cards. Is very popular in China but you can only officially see the first two seasons because the third season hasn't been fully vetted yet by the censors. I'm and you think about the the size of Netflix is portfolio movies and TV shows so in theory every one of those. Would have to be vetted by Chinese censors before they be allowed to be broadcast legally at least in China. Of and Netflix expansion into China part of its plans to be dearly global by the end of 2016. Is Wall Street mine not. They will Wall Street Def. Lee betting on Netflix going global in a very big way the stock is up more than 50% in just the last six months. In part because Netflix has shown big improvements in there global growth there there's been a sense here that Netflix is almost saturated the North American market. But the bulls we'll tell you they have a huge opportunity overseas and that's before you start thinking about China we're talking about Europe South America. I've seen the rest of the world as it's a big place comments or China. You know that that's kind of the unicorn out there for Netflix and lot of other companies I'm so this is something that definitely the bulls are betting on the question is will Netflix be able to deliver. All right Aaron task from now hope finance thank you so much for joining us appreciate it. You of course can keep up this story and the latest headlines right here at abcnews.com. You've been watching the big number and Caroline Costello in New York.

This transcript has been automatically generated and may not be 100% accurate.

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