Ted Sarandos Discusses Netflix’s China Struggles and Focus on Global Expansion

Netflix Co-CEO Ted Sarandos recently opened up about the challenges the streaming giant faced in trying to expand into the Chinese market, revealing that after years of effort, not a single episode of Netflix content was ever cleared by China’s censorship board. In a candid conversation at the World Economy Summit in Washington on April 23, 2025, Sarandos explained why Netflix ultimately chose not to pursue a presence in China.

Netflix’s Efforts to Enter China: A Futile Pursuit

Sarandos reflected on the early days of Netflix’s global expansion, noting that 15 years ago, Hollywood was obsessed with China as the key to unlocking major box office success. The belief was that any film that succeeded in China would inevitably reach a billion-dollar mark. During that time, Sarandos spent years trying to secure Netflix’s entry into the Chinese market.

“We made a deal with a third-party company to get a license and not be blocked,” Sarandos explained. However, the content Netflix created for China failed to meet the country’s strict censorship standards. “In three years, not a single episode of a Netflix show cleared the censorship board. Not one,” Sarandos said. Despite putting in considerable effort, Netflix was ultimately unable to get any content past China’s censorship system, which effectively blocked the company from expanding its presence.

China’s Resistance to Western Streaming: A Key Roadblock

Sarandos emphasized that the Chinese government had no interest in allowing a direct-to-consumer Western company to operate freely within its borders. As a result, Netflix’s ambitious attempt to break into China ultimately ended in failure, with Sarandos noting that many others in Hollywood who had tried to break into China also found themselves in the same position.

“I watched everyone spend the next decade grinding out all their time to get into China and ultimately ended up in the same place I did, which was nowhere,” Sarandos remarked.

Despite these setbacks, Sarandos noted that Netflix’s global success outside of China has been a key focus for the company, and he is proud of Netflix’s ability to thrive without the need to cater to China’s censorship, taxes, or tariffs. “There is a big business in the rest of the world that is happy to host Netflix,” he said.

Netflix’s Contribution to the U.S. Economy: A Boost for Local Jobs

Sarandos also highlighted Netflix’s contributions to the U.S. economy, pointing out that the entertainment industry is often overlooked in trade deals and job creation discussions. From 2020 to 2024, Sarandos said Netflix contributed $125 billion to the U.S. economy, while creating over 140,000 production jobs across all 50 states.

In addition to U.S.-based production, Sarandos emphasized Netflix’s global investments, such as building a billion-dollar production facility in Mexico. He compared Netflix’s investments in production facilities to those of large manufacturing companies, noting that while such projects often get attention from politicians, the entertainment industry’s contributions are sometimes dismissed.

The Importance of Hollywood in Trade Deals and Global Relations

Sarandos touched on how the entertainment industry, particularly Hollywood, is frequently disregarded in discussions about U.S. economic priorities. “You hardly ever see a sitting president photographed on a studio lot,” he quipped, urging greater recognition of the entertainment sector’s role in creating jobs and boosting the economy.

While Sarandos noted that Netflix is not immune to the challenges posed by international trade policies, including those enacted under former President Trump, he pointed out that Netflix’s ongoing investments in production and content creation remain significant to the global economy.

Conclusion: A Focus on Global Expansion and Consumer Satisfaction

Ted Sarandos’ comments reinforce Netflix’s strategy of focusing on global markets while avoiding unnecessary entanglements with countries like China that impose strict censorship and regulatory hurdles. While Netflix may not be able to penetrate the Chinese market, the company continues to prioritize consumer-driven content that appeals to audiences worldwide. As Sarandos concludes, Netflix’s future is bright, and its global reach remains one of its most powerful assets.