Netflix global growth hits Indonesia hitch; shares fall 6%

2 years ago

Netflix’s plan for global domination has hit a snag in one of its biggest international targets: Indonesia.

Earlier this month, the Los Gatos, Calif., Net TV service expanded the countries it is available in to 190. But on Wednesday state-owned Telkom Indonesia, the country’s largest telcom company, blocked Netflix for its lack of a content provider permit and because some of its content is violent and objectionable, according to reports in The Wall Street Journal and The Jakarta Post.

Indonesia is the world’s fifth most populous country with 256 million people, according to The CIA’s World Factbook.

Shares of Netflix (NFLX) were down 6.8% to $91.15, the lowest since before the company’s seven-for-1 stock split in July 2015.

Another hit to the streaming video giant came closer to home. At the Sundance Film Festival, Netflix was reportedly the highest bidder for Birth of a Nation, offering $20 million for worldwide rights to the film, but lost out to Fox Searchlight, which bid $16 million, according to entertainment business site The Wrap and other new reports.

That still makes the slave rebellion drama written and directed by Nate Parker (also the film’s star) reportedly the most expensive film acquisition ever at Sundance.

Regardless, Netflix boosted its catalog at Sundance, according to Investor’s Business Daily, landing several other movies including Fundamentals of Caring with Paul Rudd and Selena Gomez.


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