Netflix may be in the center of controversies and obviously faced a lot of challenges lately, but this did not stop them from expanding internationally and reaching a bigger market. In fact, there are some rumors going around that Netflix is preparing for a rapid international expansion, which means they will be offering their services in countries outside North America. At present, Netflix has already reached around 20 million subscribers in North America and this is expected to grow more once the company has penetrated a bigger market internationally. Apparently, the next area Netflix is targeting is none other than the UK.
Neflix has long been planning to penetrate the UK market since 2004. However, this plan has been postponed as they decided to focus more on its business in the US and in Canada. But in a recent press release, Netflix has confirmed the rumors going around and announced that they are planning to expand in the UK and Ireland by next year and will be offering unlimited TV shows and movie streaming for a low monthly subscription price. However, in doing so, Netflix will definitely face one of UK’s online rental service provider- LoveFilm.
LoveFilm is actually a hybrid streaming and DVD rental service where people can either choose to stream online or even get DVDs by mail. So what will happen to LoveFilm and those other rental companies in the UK once Netflix decided to penetrate the UK market? Well, there are analysts who say that Netflix might encounter a lot of difficulties and challenges especially now that Amazon has taken full control over LoveFilm. For sure Amazon will be using its resources to boost its services, making LoveFilm the toughest competitor for Netflix in the UK.
In addition to this, UK residents have broadbrand problems where only around 13 million households have broadband speed that is more than 2 Mbps – the speed requirement in order to enjoy Netflix services. Another challenge Netflix might face upon entering the UK market is the low interest of the Europeans in home videos compared with the US.
However, it seems that Netflix will be giving its services at a low price so we really have to see whether this strategy will work or not. As of present, those interested subscribers in the UK and Ireland may visit Netflix site and sign up already to receive some e-mail alerts and learn more about their services.
You might also like
Tags: lovefilm, Netflix, netflix ireland release date, netflix uk release date, netflix vs lovefilm
