Netflix CEO says China entry 'doesn't look good'

October 7, 2016 11:06 AM EDT

The Netflix sign on is shown on an iPad in Encinitas, California, April 19,2013. REUTERS/Mike Blake/File Photo

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(Reuters) - Video streaming service Netflix Inc's (NASDAQ: NFLX) Chief Executive Reed Hastings said the likelihood of the company entering the Chinese market "doesn't look good".

"Disney, who is very good in China, had their movie service shut down. Apple, who is very good in China, had their movie service closed down. It doesn't look good," Hastings said at the New Yorker TechFest on Friday.

Netflix's shares were up 1 percent at $106.12 in morning trading, reversing from a 1.5 percent drop earlier following the comments.

Hastings said in September the company had made no progress in its plan to enter the Chinese market as it needs to obtain a government license.

Content providers in China face stringent regulations and censorship challenges.

As part of efforts to counter slowing growth in the United States, Netflix in January launched in more than 130 new markets worldwide.

(Reporting by Rishika Sadam in Bengaluru; Editing by Sriraj Kalluvila)

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