2010: Canada

The company first began offering streaming service to the international market on September 22, 2010 to Canada. At the time, Canadians could subscribe to Netflix for $ 7.99 a month, a rate that CEO Hastings called, “the lowest, most aggressive price we’ve ever had in the world.” <Name = “Canada Stumble”> Star Staff; Canadian Press (September 10, 2010). “Netflix stumbles as it launches in Canada” . Toronto Star . Toronto Star . Retrieved December 3, 2014 . </ Ref> However, despite the proclaimed low price, content selection in Canada was extremely limited. In 2012, data conducted by Josh Loewen for Canadian Business Online 625 unique titles in Netflix ‘s library,. ^[1] This could be blamed on differences in distribution in the United States and Canada. It is important to point out that from its beginning, Canadian Netflix has offered not available in the United States. For example, a short-lived Fox Sitcom, Running Wilde starring Keri Russell and Will Arnett , began streaming on Canadian Netflix the same day it began airing in the United States on network television. Netflix – becoming deemed a “Canada-only exclusive”. ^[2] Still, lookless of a limited streaming selection, ^[3] Canada’s population. Further, as of February 2014, there were approximately 5.8 million Canadians using Netflix, or 29% of Canada’s English speaking population. This number represents an increase in Canadian users by approximately 40% since 2012. ^[4]

2011: Latin America, Central America and Caribbean

On July 5, 2011, Netflix announced its plans to launch streaming service in Latin America, ^[5] its largest expansion to date. At the time, Netflix had 23 million subscribers in the US and Canada. ^[6] Entering the Latin American market meant Netflix had access to approximately 600 million people, or twice the number of people living in the United States. ^{[7] [1] [1] [1] [1] [2] [1] [1] [1] [1] [1] [1] [1] [1] [1] [1] [1] [1] [2] [2] [1] The} Great American Revolution in the United States of America . ^[6]

Beginning in September 2011, the company began its expansion to 43 countries and territories in Central and South America, as well as the Caribbean, offering content in English, Spanish, and Portuguese. Brazil became the first country in Latin America to launch the service on September 5. It was offered at $ BR14.99 or approximately $ 9.10 per month, making it more expensive in the United States and Canada. ^[8] Rounding out the first five countries to launch streaming service in Latin America were Argentina, which followed on the 7th, Chile on the 8th, Colombia on the 9th, and Mexico on the 12th. Service spread to the other 38 countries in the following weeks. Among the content distributed to Latin America was programming from CBS, Miramax, and Showtime.

The launch in Latin America was not as successful as the company had hoped. While in Latin America, Netflix had no streaming competitors as it did in Canada, the digital divide (a lack of broadband internet penetration) hindered rapid growth. ^[9] In Brazil, for example, only 20% of the population had 500 kB / second ; 800 kB / s Netflix’s content. ^[10] Furthermore, the lack of competitors in some ways slowed growth as well. Whereas in Canada new subscribers have been exposed to streaming content by other companies, the concept was new to a wide Latin American audience, making some skeptical of the prospect. ^[9] A banking system unused to recurring monthly transactions exacerbated the problem. Still, while Latin American expansion was more slowly than expected, Netflix was not out for the expansion and their Canadian expansion at a faster rate than expected, making their first two forays into the international market fairly successful. Additionally, in spite of the hindrances to growth in Latin America, Netflix continued in pursuit of content expansion, signing a deal with Fox in May 2012 (for a July 15 start) to make its popular content (eg, How I Met Your Mother , Glee, Bones, The X-Files, Wall Street ) available in the region. ^[10] Netflix was not out of business for the expansion and their Canadian expansion at a faster rate than expected, making their first two forays into the international market fairly successful. Additionally, in spite of the hindrances to growth in Latin America, Netflix continued in pursuit of content expansion, signing a deal with Fox in May 2012 (for a July 15 start) to make its popular content (eg, How I Met Your Mother , Glee, Bones, The X-Files, Wall Street ) available in the region. ^[10] Netflix was not out of business for the expansion and their Canadian expansion at a faster rate than expected, making their first two forays into the international market fairly successful. Additionally, in spite of the hindrances to growth in Latin America, Netflix continued in pursuit of content expansion, signing a deal with Fox in May 2012 (for a July 15 start) to make its popular content (eg, How I Met Your Mother , Glee, Bones, The X-Files, Wall Street ) available in the region. ^[10] Signing a deal with Fox in May 2012 (for a July 15 start) to make its popularity (eg, How I Met Your Mother , Glee, Bones, The X-Files, Wall Street ) available in the region. ^[10] Signing a deal with Fox in May 2012 (for a July 15 start) to make its popularity (eg, How I Met Your Mother , Glee, Bones, The X-Files, Wall Street ) available in the region. ^[10]

The 2011 controversy

The initial launches in Canada and in Latin America happened (albeit barely) before Netflix’s 2011 controversy in the United States. In September of this year, the company decided to switch to two separate plans (one for streaming and one for DVD), hiked its prices accordingly, and made a move to two websites. The change in the business model was accompanied by a loss of about one million American users and a plunging stock price. Prior to announcement the exchange to service stock was valued at just $ 300, after the price it plunged to less than $ 53 a share. ^[11] Prior to this debacle, Netflix had been having its most successful quarter, mainly due to the decision to expand to Latin America. The company quickly lost all the money it made in the quarter it announced growth to Latin America, was forced to apologize, and rethink its changing model. ^[11]

Bringing people back to Netflix after the 2011 snafu came in two forms. ^[11] First, it starts work on its own original content – announcing its adaptation of House of Cards in 2011 for a 2013 air-date and its revival of Arrested Development in 2012 for a 2013 air date. Second, it continued international expansion – the originals were able to travel alongside its international expansion since Netflix, for the most part, retained complete control of their shows’ distribution rights.

2012: UK, Ireland and Scandinavia

Netflix started its expansion to Europe in 2012, launching in the United Kingdom and Ireland on January 4. ^[12] By September 18 it had expanded to Denmark, Finland, Norway and Sweden. ^[13]

According to Christof Baron, CEO of the international marketing group Mindshare, Netflix developed a strategy for its international expansion, “They start with a limited offer that does not cost them very much money and minimizes the risk. What people like, and structure programming and investment around consumer behavior. ” ^[14] This accounts for cultural taste differences and allow distribution to develop accordingly. By September 2013, Netflix had added content from Channel 4 , ITV and the BBC . ^[15]

Netflix UK and Ireland reached its millionth subscriber faster than Netflix Canada, nabbing its millionth member by July 2012. ^[16] In the UK, BARB (Broadcasters Audience Research Board) reported Netflix as being extremely successful in the UK market. More than one in ten households in the country subscribed to the service by 2014. ^[17] More than twice as many people subscribed to Netflix than to Amazon Prime. As of the fall of 2014, Netflix had three million UK subscribers which was more than twice as many had it in 2013. ^[18] Netflix is ​​estimated to have over 300,000 subscribers in Ireland as of 2016. ^[18]

2013: Netherlands

Following the United Kingdom and Scandinavia, the next country in Europe to receive Netflix service was The Netherlands, on September 11, 2013. The Netherlands was the only country that expanded Netflix in 2013, though, as the company decided to slow expansion in order To control subscription costs. ^[19] The company spent $ 3 billion on subscription content that year. ^[19] Kelly Merryman, the company’s Vice President of Content Acquisition, revealed that what was happening on BitTorrent networks and other pirate sites was more likely to be offered as part of the expansion. Netflix’s CEO further explained that illegal downloading helps to create demand, as users may switch to legal services for an improved user experience. ^[20] [21]

In the final quarter of 2013, Netflix gained more new subscribers from its pool of countries than it did from the United States for the first time since it began its European expansion, making international expansion increasingly important. As media analyst Anthony Wible has been quoted as saying, “There are only so many people in the United States. The rest of the world is far bigger and the addition of domestic subscribers will slow down at some point.” ^[22] At the end of 2013, the company had reached approximately 32 million users in the United States and had had about 10 million internationally. ^[14]

2014: Further European expansion

By September 19, 2014, the service was available in Austria , Belgium , France , Germany , Luxembourg , and Switzerland . ^[23] While receiving the rest of Europe was relatively warm, it was fairly hostile in France because of fears that the launch of Netflix would begin to ruin the country’s ” cultural exception ” – its focus on culturally specific media. This led to Netflix’s decision to create a series called Expired Marseille , Essentially a remake of ict hit series House of Cards Within a French context and one of the company’s first non-English language shows. ^[14]

Prior to its international expansion in 2010, Netflix’s subscriber base grew on average by 2.4 million people a year. Following icts arrival in Canada, Latin America, and Europe Eventually, ict subscriber base HAS moyenne grown by 7 million people a year, ^[24] international expansion key to making Netflix’s continued growth in the global marketplace. Notably, the company has over 20 original shows planned for release in 2015 and 2016. In that bunch are Netflix’s first non-English language series.

In 2013, Forbes magazine estimated that international streaming accounted for 15% of the company’s value. Netflix has subscribed approximately 30% of households in the United States. ^[25] If only the company would add 12 million users. ^[25]

2015: Australia, New Zealand, Japan and China

Expansion to Australia and New Zealand occurred on 24 March 2015. ^[ 28] On February 4, 2015, expansion to Japan was announced to begin during the fall of 2015. ^[28]

In May 2015, Netflix revealed it was in talks with Jack Ma ‘s Wasu Media Holding and other partners to enter China ‘ s online video market. ^[29]

Third European expansion: Italy, Portugal and Spain

On June 6, 2015, Reed Hastings announced, in an interview with the Portuguese newspaper Expresso , that Netflix would enter the Italian , Portuguese , and Spanish markets in October, and that it would install its Southern Europe support center Three markets plus France ) in Lisbon , Portugal. ^[thirty]

2015-16: Further expansion into Asia, CES announcement

On September 9, 2015, Netflix announced that it would continue its expansion into Asia by launching in Pakistan, Hong Kong, Singapore, South Korea, and Taiwan in early 2016, and the Philippines and Southeast Asia in the near future. ^[31]

On January 6, 2016 at Consumer Electronics Show , Netflix announced a major international expansion into 130 new territories; With this expansion, the company promised that its service would be available in the near future, with the notable exclusions including Mainland China, and regions subject to US sanctions, such as Crimea , Syria , and North Korea . The company also announced a partnership with LG to market pre-paid services in Asia, Europe, and the Middle East. ^{[32] [33] [34] [35] [36]}

2017-: China deal

During the CES 2016 announcement, Hastings stated that any potential expansion in China could take “many years”, owing to the tightly regulated state of the internet and media industries in the country. While the company has admitted that some of its original productions (such as Crouching Tiger, Hidden Dragon: Sword of Destiny ) were hatched to appeal to a potential Chinese audience, Hastings stated that the company was in the process of building relationships with local partners that it Could possibly form a joint venture with. ^[37] Rights to House of Cards had previously been sold to Sohu , where it was a modest success, but was pulled by regulators. ^[38] [39]

On April 25, 2017, Netflix announced that it had reached a licensing deal with the Baidu -owned streaming service iQiyi , although certain of the deal was not announced, some Netflix original productions will be available on iQivi day-and-date with their premiere elsewhere. ^[39]

References