Netflix, Inc. (NASDAQ:NFLX) CEO Reed Hastings said the company is still in a standstill with China.
The online streaming service has expanded its services to more than 190 countries after adding 130 markets in a single day earlier this year. However, it may be a while before it can break through in China.
Hastings said that the reason behind the lack of progress is the same reason why the country blocks other outside companies–censorship and government regulations complicate what should be a simple process of adding Netflix to its online offerings.
He added that the company is in the “relationship-building phase” as they believe there is still chance for the service to make it to China sometime in the future.
Other companies have struggled to break through in China, including Apple Inc. (NASDAQ:AAPL). Tim Cook has made numerous trips to China to try and sell its products and services overseas, but it has been an uphill battle for the Silicon Valley giant.
Netflix has been met with stiff competition in the U.S. lately thanks to the rise of YouTube Red (NASDAQ:GOOG,NASDAQ:GOOGL), which has an ad-free service for $9.99 per month.
Netflix last released its quarterly earnings report in July, revealing it earned 9 cents per share, ahead of the 2 cents per share analysts hoped for. The company only had 1.7 million new subscribers over the period, missing the market estimate of 2.1 million.
NFLX stock is up 0.2% Tuesday.
