Netflix, Inc. (NASDAQ:NFLX) would not go forward with its Europe expansion plans until late this year. The online video streaming company, in its annual report filed Monday, said that it expects “a substantial expansion” in Europe in late 2014. Earlier this year, Netflix stated that it will penetrate deeper into the European market, which is one of the most internet connected parts of the world. The company has not disclosed the specific date of its expansion plan.
International expansion important to fuel growth
Netflix, Inc. (NASDAQ:NFLX) needs to keep growing internationally to fuel its growth as in the United States there are many other players giving tough competition to the company.
According to analysts, the streaming company would expand aggressively, in the later part of the year after doing all the necessary paperwork. One of the analysts at Morgan Stanley upgraded Netflix last week saying that the company has expanded in the international region, and in the next phase, it would the focus would be on high speed broadband users in regions like Germany, France, Spain, and Italy.
International subscriber base of Netflix, in the most recent quarter, has swelled by 1.7 million members to 10.93 million, compared to 33.4 million domestic members.
Last year, Netflix, Inc. (NASDAQ:NFLX) gave utmost priority to International expansion. In 2013, it expanded in Netherlands, and the service is already doing well in Latin America. It also operates in the UK, Ireland and the Nordic countries.
As of now, Netflix, Inc. (NASDAQ:NFLX) has not stated the European regions, where it is planning to roll out its service, but according to recent reports France and Germany, two of Europe’s biggest, richest are the next destinations.
Cindy Holland, Netflix’s vice president of the original content told that “average Netflix viewer watches two and a half episodes in one sitting.”
CEO Hastings notes that the possible US market for Netflix is sixty to ninety million subscribers, which will total to two times or three times of the current count. According to him, nearly half of the TV will be online by 2016. However, regarding the exact road-map, Hastings has not said anything yet.