Chilling Netflix: financialization, and the influence of the Chinese market on the American entertainment industry

Abstract

This article argues that as China becomes more central to streaming platform revenues, the global influence of Chinese content regulators will rise, not just because of restrictions in the Chinese market, but because of the active participation of US technology firms, driven by the demands of US capital markets. This article demonstrates how financialization, or prioritization of shareholder value above all else, in the US technology industry expands the influence of Chinese digital media standards. To explain this phenomenon, the article examines the case of Netflix and its competitor and partner in China, iQiyi. Netflix has predicated its growth on being able to enter global markets but has thus far only been successful in distributing limited amounts of its content in China, most notably through licensing deals with the Chinese platform iQiyi. Through its iQiyi content partnership, Netflix is participating in China’s media content control regime. iQiyi leveraged content from Netflix to expand its user based prior its IPO in the United States, where it can operate, but Netflix cannot. Ultimately, this article demonstrates how the US technology industry expands the influence of Chinese regulators.