Netflix To Roll Out Its Services In Four Critical New Asian Markets
As Netflix rolls out its services in four crucial new markets in Asia, Lets double checks its dash for global domination.
Netflix Inc. has effectively established its supremacy in its home country, and holds a strong position across various international countries. After spending years in becoming the largest online streaming companies, it is continuously expanding its services abroad.
Netflix now has its focus towards the fast growing Asian markets. Followed by its services launch in Japan last week, it seems the company is progressing in the region. The streaming giant said in a statement yesterday that it might launch its streaming services in Singapore, Taiwan, South Korea, and Hong Kong by next year.
Netflix’s primary aim in increasing its international markets reach is to influence its popularity to disclose untapped revenue sources. While much of North America and Europe are much developed markets along with hefty competition, Asia seems to be new ground for streaming companies searching for fresh territories.
Together with Asia, Netflix Inc. has slanting for other regions as well. This year the company has started services in New Zealand and Australia, and now Japan. By the end of current year, it will finish its launch in Spain, Iceland and Czech Republic.
For Asian region, performance of Netflix is expected to be different, depending on factors like licensing expenses, consumer behavior and perception, license availability and local competition. Earlier this year, Netflix introduced its services in Australia. After which the local competitor Quickflix has lost nearly 5000 users a month.
However, Netflix briskly capture Australia at the local competitor Quickflix expense. Japanese customers are more challenging as they aren’t familiar of paying for such streaming services. When the company tried to enter Japan, Hulu was not able to make any impression before selling its assets in Japan to local TV network, namely Nippon TV.
The top four countries on Netflix target consists of millions of customers. However, the competition is tough and the company needs to take major steps to capture potential market share. Local video streamers and broadcasters including iFlix, HKTV and the HOOQ in Singapore and Hong Kong, pose a substantial challenge.
The streaming giant has established local programming a keystone of its expansion plan. On this end, it has required domestic distribution partners to get license for video streaming for regional shows, televisions and movies. Customers will still be provided access to famous shows like House of Cards and Orange is the New Black, which will be the incentive for users to opt for the streaming services.
Netflix is all set to enter China next year. However, it will be against tough competition from streaming services which offers similar kind of licensed services free of charge.
Netflix Inc. stock was up 4.45% to $99.18 at market close on Wednesday September 9, and increased further by 0.23% during pre-market session today as of 4:39 AM.