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27 Sep

Netflix Inc. Continues Expansion In Asian Markets

Published by Mark J Guillen

Netflix Inc. Continues Expansion In Asian Markets

Can Netflix replicate its success in America and Western Europe in its newest markets?

During the start of the month Netflix Inc. boarded on the following stage of its international expansion by introducing service in Japan. While the streaming giant has introduced successfully on numerous continents, this was company’s very first move in Asia.


After few days, Netflix Inc. revealed its plans to expand its presence in Asia in the beginning of 2016, introducing in Singapore, Hong Kong, South Korea, and Taiwan. These are practical markets for the streaming giant to tackle. However, along with each set of countries it plans to enter, the company is digging into more risky territory.


As the company has moved outside its home country United States in the last 5 years, it has instituted massively more success in these countries that seems like U.S market.
For example, the streaming giant is leading in Canada. It has slowly built-up a robust presence in other markets such as United Kingdom. Netflix has also been much successful in Netherlands and the Nordic countries.
Conversely, in Latin America with fewer people fluent in English and less broadband penetration. The company reported huge losses in the beginning and has witnessed a long trek to guide itself to profitability.

The new market of Netflix will appear more similar to Latin America instead of Nordic countries or Canada as it gets to the last stage of its global expansion plan. The main question is whether the company has learned anything in the last few years to pace up the profitability process in competitive markets.

The markets in Asia that the company is planning to enter currently have a stimulating set of negative and positive traits. Looking at the positive aspects, they all contain comparatively high gross domestic product per capita, building a service such as Netflix reasonably priced, and they have more broadband dispersion, making the services more feasible.

Territories such as Singapore and Hong Kong also have high English language fluency, which might make the giant’s English language original shows more valuable than before. Taiwan and South Korea are average in English speaking, whereas Japan is much more behind the pack.

Cultural differences might represent a bigger barricade to Netflix’s global expansion. American TV content is not as much popular in high level than Netflix’s successful global markets.


In Japan, which is considerably the company’s biggest Asian markets, Netflix faces the excess headwind of the unanticipated old media popularity. For instance, physical media shows 78% sales of music in Japan, while digital formats control music sales in majority of countries.

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