Netflix, Inc. (NASDAQ:NFLX) reemphasized its plans of expanding globally by defining the Internet TV in several languages such as Swahili, Spanish, Vietnamese, Filipino and dozens more in the next two years. Netflix has its presence in as many as 50 countries and has plans of expanding in as many as 200 countries by the end of 2016 for which it is accelerating its global expansion as announced by the company on Tuesday.
Will remain profitable
Netflix has a subscription-based, advertising-free model for its streaming service, and it plans to replicate it for the global expansion. The streaming company believes that while it pursues such expansion, it will remain profitable as well. While the international streaming business of Netflix, Inc. (NASDAQ:NFLX) is losing money but the company hopes that by 2017 it will be able to generate profits globally.
“Once we complete the expansion, we’re going to have a very unique and compelling proposition to producers, which is we can get your content seen and loved around the world,” such as Kenya, Argentina, Vietnam, Philippines and every other place where it is possible to expand, Mr. Hastings said in an interview.
Netflix, Inc. (NASDAQ:NFLX) also talked about its plans of expanding in China for which it is yet to explore the options. The company said that for China its focus will be on material that is original and also globally licensed.
Global expansion important for Netflix
Netflix, Inc. (NASDAQ:NFLX)’s growth in the United States is slowing down, and this is a major concern for the company. Therefore, international expansion is vital for it. Netflix has an ambition of generating revenue worth $10 billion, and it hopes to do so by focusing on global expansion. The global ambitions of the company will enable it to reinvest in its service, and at the same time allow it to develop and license more content.
For the quarter ending Dec 31, 2014, paid streaming subscribers increased to 54.5 million, which was 31.5% more than the numbers reported in the same quarter last year. On a year over year basis the revenue went up by 35.7% to $1.3 billion. For the quarter, the company was able to beat its guidance for the total paid streaming subscribers.