Friday, April 10, 2015

The Expansion of an Empire




Today's question: Will Netflix impact Europe the way it has revolutionized the US?

This information behind this post was gained through the article Netflix invades Europe: Why expansion beyond the US is so critical

  1. Netflix has been moving to enter the European sector for about three years now, as it's no longer seeing the jumping growth it was in it's first fifteen or so years of business. U.S. business is a steady growth, as the leaps in consumer content have already hit from it's home nation's customers. As well as proven itself against competitors like hulu and amazon prime here in the states. This move is necessary for Netflix to make massive gains and replace cable TV like it's been itching to due since online streaming really took hold.
  2. Europe won't be so easily taken. Unlike the U.S. where Netflix was the first forerunner in streaming services for a good long while, Europe already has services, different from country to country, with companies like OrangeCast+, Prime, Vivendi and others who offer the same streaming but on a smaller scale. The Los Gatos company is going to have to fight fiercely to win those subscribers and see the 25% growth it has for the past few quarters.
  3. So how is Netflix going to win and convert over 63 million subscribers? Well, price is one thing making it very attractive, it's keeping it's 7.99 price tag, just with an added Euro symbol. As well, it seems like the streaming service is trying to adapt to the new surroundings by launching foreign based TV series, like Perky Blinders and Southcliff, as well as a supposedly new French based show on the horizon that's being kept hush and hush. Many of europe already ate up shows like House of Cards and OITNB on torrent sites, so that easy access will make it more attractive. It's a tactic that worked well to gain US consumers and they're already seeing gains.
Questions


  • What effect will Netflix have on international pirating rates?
  • Who's going to put up the biggest fight?
  • What international companies are going to be undermined by this?







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