Netflix Debuts in Belgium and Luxembourg in European Expansion
It's been a big week for Netflix. Earlier this week the leading subscription video-on-demand (SVOD) service debuted in France, Germany, Austria, and Switzerland. Today, the begins service in Belgium and Luxembourg, as well.
Netflix notes that over 63 million households in those 6 European countries now have access to Netflix. Streaming service costs €7.99 in France, Germany, Austria, Belgium, and Luxembourg, and CHF 11.90 in Switzerland. Prospective customers can get a free one-month trial from Netflix.com.
While it isn't disclosing the number of movies and TV shows available, Netflix emphasizes that it offers original series (such as Orange Is the New Black), international hits, and local and European titles. Subscribers can access subtitles and dubbing for foreign language content.
Netflix now counts more than 50 million subscribers in over 40 countries.
Speaking at the CTAM cable marketing summit, Netflix CEO Reed Hastings said the company would decide in 2015 where it would expand next in Europe. In the next few months, he said the company would spend time in France and Germany learning and making adjustments, and then decide next year if it wants to expand into southern, central, or eastern Europe.
Netflix's strategy is to try to break even in a new country in three to five years, Hastings said, and gain subscribers in a third of households in seven years, reports Advanced Television.
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The three countries will have access to Netflix's library of original and third-party TV shows and movies, with pricing not yet set.
The subscription VOD service enjoyed strong rollouts in Europe, but will it have the same success down under? One competitor hopes not.
Without the burden of shiny disc delivery, Netflix's streaming-only approach is cannibalizing physical media content sales in countries where internet penetration and mobile device usage is way above average.
When viewers are given affordable access to premium content, rates of online video piracy go down notes a Futuresource analyst.
Later this year, residents of Austria, Belgium, France, Germany, Luxembourg, and Switzerland will be able to sign up for Netflix streaming.
The popular online streaming service will head north late in 2012, although details are sparse.