Ted Sarandos Reveals Why Netflix Isn’t in China and Discusses Hollywood’s Role in U.S. Economy

Netflix co-CEO Ted Sarandos recently opened up about why the streaming giant has never entered the Chinese market and why Hollywood often gets “overlooked” in global trade discussions. Speaking at Semafor’s World Economy Summit on April 23, 2025, Sarandos discussed his failed attempts to bring Netflix to China, and why the entertainment industry deserves more recognition in trade deals.

Netflix’s China Struggles: A Fruitless Pursuit

Sarandos reflected on the early days of Netflix’s global expansion, noting that 15 years ago, many in Hollywood believed that entering the Chinese market was crucial for success. “Fifteen years ago, everyone thought [a presence in China] was existential,” Sarandos said, explaining that he personally invested several years trying to establish Netflix’s presence in the country.

Despite these efforts, Sarandos revealed that Netflix was unable to clear China’s strict censorship requirements. “We actually had to deal with a company to license our content … and one part of the deal was the content had to clear the [China’s government] censorship board to make it to the air,” Sarandos recalled. However, in three years of trying, “not a single episode of a single Netflix show cleared the censorship — not one.”

Sarandos explained that the Chinese government showed no interest in allowing a direct-to-consumer service like Netflix to operate within the country. As a result, Netflix was unable to expand into China, a market that many believed was critical for global success. “I watched everybody spend the next decade grinding out all of their time to get [into China], and ultimately ended up in the same place I did — which is nowhere,” Sarandos said.

Now, Netflix remains one of the few major U.S. companies without any exposure to China, including the country’s censorship, taxes, and tariffs. Sarandos noted that while Netflix’s absence from China might be seen as a setback by some, the company thrives globally, with strong business in markets outside of China. “There’s a big business in the rest of the world that is happy to host Netflix,” he added.

Hollywood’s Role in the U.S. Economy: An Industry Often Overlooked

Sarandos also took the opportunity to address Hollywood’s role in the U.S. economy, especially in light of global trade deals. He pointed out that while Netflix and the broader entertainment industry contribute significantly to the U.S. economy, they often go unrecognized in national policy discussions.

“I don’t know about a bad rap, but it’s overlooked as an industry,” Sarandos said. He highlighted the massive impact Netflix alone has had on the U.S. economy, noting that from 2020 to 2024, the company contributed $125 billion to the U.S. economy and created 140,000 jobs. Despite this, Sarandos pointed out that the entertainment industry is often “thrown under the bus” in trade discussions.

Sarandos emphasized the importance of acknowledging Hollywood as a major economic contributor, as it is frequently overshadowed by other industries in trade deals. “You hardly ever see a sitting president get photographed on a studio lot,” he quipped.

A Growing Global Business

Sarandos concluded by reiterating that Netflix’s global reach continues to grow despite the challenges in China. With an expanding presence in international markets and a successful track record of producing content that resonates with viewers worldwide, Netflix’s future remains bright.

The remarks come after a strong earnings report for Netflix in April 2025, where the company exceeded Wall Street expectations. As Sarandos continues to lead Netflix’s global expansion, his remarks on China and Hollywood highlight the ongoing evolution of the entertainment industry and the shifting dynamics in global trade.