NEW YORK (TheStreet) -- Netflix (NFLX) - Get Report stock is tumbling by 6.62% to $91.35 in late-afternoon trading on Wednesday, after Indonesia's largest telecommunications provider blocked access to its video-streaming service today, The Wall Street Journal reports. 

State-owned Telkom argued that Netflix does not have a permit to operate in Indonesia and that some of its content is too violent or inappropriate for the country's censorship standards.

Telkom has asked Netflix to alter its content to comply to Indonesia's regulations. 

Netflix intends to adhere to the country's standards when appropriate, but suggested that, as a streaming service, it might not need to apply for permits in the same way that its cable counterparts do, the Journal adds. 

The Indonesian government will decide next month whether to completely block Netflix or to create a new regulation allowing video-streaming services to continue to operate in the country, according to the Journal.

For now, Netflix remains available on non-Telkom networks, but Telkom accounts for more than half of the total Indonesian market, the Journal notes. 

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.

TST Recommends

Netflix's strengths such as its solid stock price performance, robust revenue growth and expanding profit margins are countered by weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk.

You can view the full analysis from the report here: NFLX

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

Image placeholder title


data by