US-based DVD and online film-rental service provider Netflix is heading towards Europe initially in Spain at Q1 of 2012 or earlier. The company has already laid plans to expand into the Caribbean and Latin America.
While it faces tough competition in the European continent, the company expects substantial increase in patronage when it recently revised the subscription plans offered. The plan would entail tremendous cost and yet it expects to reap benefits on long-term basis as customer base is predicted to balloon significantly. Operations would have to be streamlined to reduce cost particularly those pertaining to warehouse and distributor center maintenance and purchasing of disc.
Netflix has been currently dealing with the rising content licensing and acquisition costs particularly on streaming but is optimistic that expansion plans will be unaffected. UK’s Lovefilm (Amazon-owned) will face the new competitor head-on with its continued grip on the local arena while the continent in general is watching the battle plan of Playstation3-based Mubi. The subscription plans have been separated into two, one for the instant streaming and other for the DVD rental.
Both streaming and rental schemes are now pegged at the same price of $7.00 in lieu of the low-priced DVD by mail system which the company has found to be financially unrealistic.
You might also like
Tags: lovefilm UK Amazon, luke wilson love at&t, Netflix, netflix uk, netflix uk release date
