It now looks increasingly likely that Netflix will soon launch in Central and Eastern Europe.
Just three months ago, following the release of the company’s Q4 2013 results, I was of the view that the chances of this happening were slim. However, what’s happened since then has convinced me that Netflix is eying up some markets in the region – Poland is probably very near if not at the top of the list – with a view to launching there, if not this year then certainly in 2015.
There were a number of interesting points that came out of the company’s latest set of results, published only earlier this week, and the conference call that accompanied them. Firstly, Netflix is placing a growing emphasis on its international operations, which now account for 25% of total revenues and are expected to become profitable later this year.
By year’s end, Netflix is set to up the ante in its European expansion by launching in France, Germany and Belgium.
France is particularly significant, as Netflix will have to clear a number of obstacles with the authorities pertaining to such matters as local and European quotas. As Broadband TV News reported earlier this week, this now appears to have happened, paving the way for its launch in the next few months.
When discussing Netflix’s performance in some of the international markets it is already present in, CEO Reed Hastings referred to the “tremendous success” enjoyed in the Netherlands, where it launched only six months ago. He also spoke positively about its performance to date in Argentina, Mexico, the UK and Nordics.
Acknowledging that these are a broad set of markets, he added that the company would learn as it grows while stepping up its international expansion.
There will almost certainly be lessons for Netflix in Central and Eastern Europe when it does finally enter the region.
What is clear is that markets such as Poland are already preparing for its debut, with competitors, including HBO GO, stepping up their activities.