Despite a hostile reaction to its latest price changes Netflix remains on target to grow within the U.S. And if the latest rumors prove to be true, outside of the U.S. as well. The U.K. and Spain could soon have their own ‘Watch Instantly’ services to enjoy.
Netflix Up, Netflix Down
It’s been a strange week for Netflix. For really the first time its customers have balked at a decision the company has made. That decision being to separate the DVD-by-mail business from the streaming business completely.
Of course, had the two services combined cost as little as they used to do no one would have raised an eyebrow, but by pricing both at $7.99-per-month Netflix has effectively raised its prices by almost $6 for a sizable chunk of its subscribers. Will the voices of complaint actually lead to cancellations or is this nothing more than a storm in a teacup which will die down before too long?
Either way, Netflix isn’t letting the controversy infringe on its plans to expand internationally.
Netflix In Europe
At the start of the month Netflix officially announced the next stage of its effort to expand internationally. With Canada already on board, Latin America is next on the agenda, with 43 countries in the region being added to Netflix’ roster before the end of 2011.
Variety is now reporting that Netflix then has Europe in its sights, with deals inked to bring the service to the U.K. and Spain in the first quarter of 2012. As with all these international plans DVD-by-mail doesn’t have a place, with Netflix being a purely video streaming service everywhere but the United States.
Europe is a much trickier proposition than Latin America, however, because Netflix faces competition which has already established itself. It will need the Netflix name and brand, and a healthy dose of advertising and word-of-mouth, to succeed.
Conclusions
should be applauded for its aggressive expansion plans. It may have taken a while for the company to feel comfortable breaking out of its self-imposed U.S. borders but now that it has it is taking no prisoners in its effort to be the biggest and best video streaming service in the world. And I wouldn’t bet against it at this stage.
