Netflix is planning to open a third city in China: Shanghai
Netflix, the streaming video company, plans to open its third Chinese city in 2020, a move that could reshape the way the company views the country’s second-largest economy and one of its largest markets.
The company also has ambitious plans to expand its business in the Middle Kingdom, a key market in Asia and a crucial market for Netflix, which has struggled to find a home in the region for more than a decade.
In a statement Monday, Netflix said it would expand its service in the country, adding that it plans to begin operating there by the end of 2020.
Netflix has been expanding its services in the Chinese market for years, including a major expansion last year.
But the company has struggled with a lack of access to the local market.
The Chinese government, which was one of the main backers of the acquisition, has not approved the deal.
Netflix is currently looking to invest $1 billion to open four new cities in the next decade, according to the company.
Netflix also said that it would hire more than 1,000 people in the Shanghai region by the year 2020, which would make it one of China’s fastest-growing markets.
China has struggled over the years with a growing middle class that is increasingly interested in streaming video services and services like Hulu, Amazon, and Netflix.
But many in the industry argue that the country needs a larger pool of foreign talent in order to compete with its homegrown competitors.
Netflix, for example, said last year that it was opening a new office in the city of Chengdu.
But its plans have been delayed for months.
Netflix’s plans to establish a new Chinese city come as China has begun to grapple with a widening inequality gap that has sparked protests over income inequality.
More From Business Insider:Netflix has been building a new business model in the China market since 2010.
In 2020, it plans on opening more than 200 new cities, a massive expansion that would mark the company’s largest-ever investment in a Chinese city.
That same year, Netflix opened a new headquarters in the northern city of Hangzhou.
Netflix also announced plans last year to build two new offices in Shanghai, the largest city in the world.
The first of these new offices, in the financial district of Shenzhen, would be located on the ground floor of a high-rise building that sits on a main thoroughfare.
The company said it has plans to build four more Chinese cities over the next three years.
It also announced earlier this year that, by 2020, the company would be launching an expansion program in Shanghai that would open new offices and bring additional local talent to its workforce.
Netflix plans to invest up to $200 million in new businesses in the cities it has planned to open, the statement said.