Netflix, Inc. (NASDAQ:NFLX) Hits Brick Wall In Indonesia As Its Services Get Blocked


Global sensation Netflix, Inc. (NASDAQ:NFLX) has encountered some problems delivering its content to the Indonesian market as it expands on a global scale. According to the Wall Street Journal, Indonesia’s biggest telecom provider has blocked Netflix streaming services.

PT Telekomunikasi Indonesia Tbk has apparently denied its clients access to Netflix services over all its platforms. The telecom company claims that it decided to block Netflix content because the streaming company is yet to acquire an operating permit in the country as a company. It also claims that Netflix content should first have to go through Indonesia’s sensor board according to a film law instituted in 2009.

Arif Prabowo, the Vice President of corporate communications at PT Telekomunikasi Indonesia Tbk claims that Netflix should conform to the Indonesian regulations. It is however not clear whether the company’s decisions were also influenced by its own interests since it also owns a video-on-demand service called UseeTV. The situation appears as a defensive strategy by the Telecom company from a different point of view. Either way, the situation has brought forth more questions about how the company will regulate content provided by Netflix.

Netflix has responded to the service blockage with a statement that it is willing to accept and stick to the rules and regulations that the country will provide. However, it feels that it does not necessarily have to be governed by the same regulations enforced on cable networks since it is an internet streaming service. Another factor to consider is that the telecom company and the Indonesian government might come up with different regulations since the two do not have common interests.

The Indonesian Minister of information and communication technology stated that the country currently does not have regulations for content providers such as Netflix, Inc. (NASDAQ:NFLX). The government’s decision will ultimately determine the fate of the online content provider in Indonesia. This decision is expected in the next four weeks. Indonesia’s large population makes it a point of interest to Netflix.