Shares of Netflix (NFLX Quick QuoteNFLX - Free Report) are up nearly 4.5% in morning trading Friday following reports that Chinese e-commerce giant Alibaba (BABA) is working on a takeover bid for the leader in the video streaming market.

According to Benzinga, a source said that Alibaba going after Netflix would mark an important turning point in what is becoming a fierce competition to dominate the Chinese content market. LeEco, a Chinese technology firm, recently purchased Vizio, the largest maker of televisions in the U.S.

Alibaba has stayed active in the content market as well. The company currently operates Tmall Box Office, a subscription-based streaming service that mirrors the features of Netflix. Liu Chunning, President of Alibaba’s Digital Entertainment segment, has said that the company wants to “redefine home entertainment” and hopes to become like HBO or Netflix in the United States.

Of course, one way to become like Netflix in the United States would be to just buy the company all-together. Alibaba’s interest in the video streaming company comes just days after Time Warner announced a new 10% stake in Hulu, and Netflix has been busy partnering with media giants like Comcast (CMCSA Quick QuoteCMCSA - Free Report) and Disney (DIS Quick QuoteDIS - Free Report) .

The point here is that the industry is undergoing a shift into a “new normal.” Video streaming is here to stay, and now companies want to own their own slice of the content as well. The shift in the media sector was a main focus on this week’s episode of the Zacks Friday Finish Line podcast.

It’s clear that any move Alibaba might make for Netflix is still a long way out, but today’s new rumors are certainly interesting to note. Do you think it would be a smart deal to make? Let us know by joining the conversation with ZacksResearch on StockTwits and Twitter.

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