05
Mar

Around the World in 730 Days …

Leave a Comment  /  Posted in Blog Post, David Wells, International expansion

imageurlNetflix CFO David Wells gave some clues to why Netflix suddenly decided to squeeze its international expansion into the next two years when he spoke at Morgan Stanley this week.

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┬ástore-based┬ácompetition.

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

 

 

 

 

 

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