A few days ago we heard about Netflix's possible entry into Spain, and now Variety (via GigaOm) reports that Netflix is targeting Spain and the UK for Q1 2012. Netflix is heading into 43 Latin American and Carribean countries later this year, and into at least 2 European countries early next year.
As Variety notes, Netflix will face serious competition for the first time in England:
That could be a reflection of tougher competition it will find in England, from Amazon-owned Lovefilm to incumbent multichannel services like BSkyB, which may seem newly vulnerable given the turmoil that has engulfed News Corp.'s aborted attempt to grab a bigger stake in the satellite service.
Netflix's ambitious travel plans could also help explain the stunning decision announced Tuesday to raise the price on subscribers who want to both stream video and receive discs by mail. Many analysts interpreted the price hike as a move meant to help fund Netflix's skyrocketing content costs, which international territories will undoubtedly compound given the need to secure both local and imported programming to each region.
Wedbush Securities analyst Michael Pachter estimates Netflix's global content bill could amount to $2 billion by 2012.
This is laughable. Doesn't anyone else find this just a little to coincidental that all these rumors about global expansion come out a week or two before the earnings call? Throw that in plus the price increase, content cost comming due and Netflix has completely hid the one thing they were trying to hide and that's how bad things were this quarter.
Posted by: Henryjoe28 | July 16, 2011 at 07:56 PM
Jolly?
Sorry dude, but circumstantial evidence says you're jolly - new account, never posted anything before, show up just after jolly's old account is blocked, first post tells Mike to ban someone jolly just had an argument with, second post you're personal theory that NetFlix is the next Enron (or as good as).
Posted by: gir | July 16, 2011 at 08:03 PM
I think its safe to say that part of the price increase will help subsidize NF expansion internationally. Odd that NF never mentions this. I do feel a little ripped off here. BTW, I am not jolly or any of his aliases.
Posted by: FearNo1 | July 17, 2011 at 05:16 AM
Still not one Netflix Executive has confirmed any of these rumors about international expansion. Pretty coincidental the misdirection from the 2nd Quarter miss. I heard Netflix next expansion was to the North Pole then on to Mars.
If any of these rumors are true about international expansion it's even worse that Netflix raised the prices on loyal customers to fund this.
Posted by: Henryjoe28 | July 18, 2011 at 06:40 PM