After testing the waters in Canada, Latin America, the United Kingdom and the Nordics, Netflix has concluded that its international model offering streaming-only with mostly Hollywood-produced content works really well, even in non-English-speaking countries. Wells said demand for “high-quality, western-produced” TV shows and movies is strong globally and international consumers are increasingly aware of streaming and of Netflix.
Thus, Netflix has been constructing content catalogs of around 80 percent Hollywood-produced content and 20 percent local content for each market, Wells said.
The strategy of acquiring popular local content extends Netflix’s “cool factor” by connecting subscribers with global zeitgeist — the same way the company aligned itself with the budding independent film movement, way back when, to culturally elevate online rental above pedestrian Blockbuster and its other store-based competition.
Wells said the top factors in choosing the next expansion market are (pretty obvious, in case you’re wondering why service hasn’t started in your area):
- Broadband penetration
- Consumption of online video
- Disposable wealth
- Netflix’s ability to accept payment in that country