![]() However, there were challenges in Netflix’s global expansion into Latin America and the Caribbean. The company partnered with CBS, Miramax, and Showtime to share local content in the region. The streaming service was priced at around $9.10, making it more expensive than in North America.įollowing Brazil, Netflix continued its expansion in Latin America, and the company launched in Argentina, Chile, Colombia, and Mexico in the subsequent days before expanding into 38 countries in the next weeks. Brazil was the first country in Latin America to go live with the service on September 5th. In September 2011, the firm began its expansion to 43 countries and territories in Latin America and the Caribbean, with content available in Spanish, English, and Portuguese. On announcing its international expansion into the region, Netflix’s share price surged by 8%, taking it to record levels. Successful expansion into the Latin American market would provide Netflix access to over 600 million potential new subscribers. Once it had expanded into Canada, the next logical step in the Netflix global expansion journey was to expand into Latin America and the Caribbean due to the region’s geographical proximity to the United States.Īt this point, the business had around 23 million subscribers across the United States and Canada. It exemplifies how choosing a similar market to your home country can be a relatively easy first step in your international expansion plans. The choice of Canada proved to be an excellent success for Netflix. However, despite the initial relative lack of content, it took the company less than a year to attract one million subscribers, roughly three per cent of Canada’s population. According to Canadian Business Online, in the United States, by 2012, there were 10,625 distinct Netflix titles, whereas in Canada, there were only 2,647. Pricing was an essential consideration to win market share, and the initial subscription fee was priced at $7.99 per month, which Netflix CEO Reed Hastings referred to as “the lowest, most aggressive price we’ve ever had anywhere in the world.” This was a key initiative in Netflix’s business model to attract users quickly.Įven with the low price tag, Canadian content availability was minimal. Netflix officially launched into the Canadian market in September 2010, kickstarting its first foray into international markets. This made it easier for the company to expand into Canada and tailor its content offerings to suit this new market. This was because the market was very similar to the United States regarding culture, language and geography. One of the countries Netflix first considered for its global expansion was Canada. When entering into new countries, Netflix initially chose its following markets based on similarities to limit potential cultural and geographical challenges. How Netflix Carefully Chose Its International Markets This article will explore three key areas that helped the streaming service achieve success, namely:Ģ. ![]() Starting in just one country, the United States, Netflix has expanded into over 190 countries in just seven years!ĭespite the current challenges Netflix is facing concerning new subscribers, the company managed to expand globally due to careful planning and execution successfully. Netflix is a prime example of a company successfully expanding its operations internationally.
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