Netflix is once again expanding. Having built huge user bases in both the U.S. and Canada, it’s now seeking to grab customers in Latin America. A gamble, no doubt, but one which could see the company win big.
International Netflix
It’s fair to say Netflix has enjoyed incredible success in the United States. The company has been growing monumentally quickly ever since it added a streaming video element to its existing DVD-by-mail service. It’s now a giant both on and off the Web.
However, that creates its own problem in that expansion within borders always has a finite lifespan. At some point everyone in the U.S. who wants Netflix is going to have it. And then growth levels can flatten fairly rapidly.
The solution is to break out of those boundaries and go international. Which is exactly what Netflix has already done and is planning on doing more of in the future. The countries it’s moving in to aren’t the most obvious but actually make a lot of sense.
Latin America, Here We Come
Netflix has already launched a streaming service in Canada, but I assumed the U.K. or another Western European country would be next. But no, Latin America and the Caribbean it is, and 43 separate countries in that region to boot. Which is surprising.
Netflix announced this next stage of its international expansion on Tuesday (July 5) and its stock instantly soared. The 43 countries include Mexico, Central and South America, and the Caribbean, and the service is due to launch later this year.
For starters there are around 600 million residents in that part of the world. Which, when paired with the fact some of these countries are seen as having economies set to develop and grow in the near future, means this could be a masterstroke.
The availability and adoption rates of Broadband could be an issue, but even this is improving.
Conclusions
is taking a gamble launching in this region and in so many countries at once. But it’s a calculated risk that could pay big dividends. And assuming it does then it paves the way for Netflix to expand to even more territories.
[Via NewTeeVee]
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