Foreign companies will be able to provide online game downloads and streaming services only if they comply with the content rules
Soon the streaming market world will see a small revolution. China, the world’s second-largest economy, will allow foreign companies to provide online game downloads and streaming services in the country by the end of the year. According to reports from the local Beijing News newspaper, foreign companies will have to comply with strict national regulations on content and data security requirements.
Beijing’s move is particularly important because it is the realization of China’s commitment to give foreign capital greater access. Furthermore, the country has long complained about China’s lack of market access for foreign players.
Beijing is ready to open the country’s economy to greater market-based competition and international trade
The Beijing News said that the plan is part of the government’s three-year project to expand the reform and opening of the service sector, which focuses on allowing more foreign capital to participate in the finance, education and content sectors Internet.
Foreign companies wishing to enter the Chinese market must comply with the country’s online content control system, in which films and television programs must obtain licenses from regulatory authorities before they are made available.
The March 2016 rules led to the closure of Apple’s iTunes Film and iBooks services in China
Analysts said the new plan would allow foreign streaming service providers like Netflix, YouTube and Spotify to enter the Chinese market. However, first they will have to earn the trust of Chinese regulators.
The procedure for these companies is not easy. In fact, without government approval and according to the rules issued in February 2016, foreign companies and their affiliates are not allowed to publish online content such as text, maps, games, cartoons and audio and video.
MORE ON THIS TOPIC