Netflix now expects to complete its global expansion over the next two years, while staying profitable. It then intends to generate material global profits from 2017 onwards.
In a statement accompanying its latest set of results, the company says that acceleration from the (around) 50 countries it is currently present in to 200 “is largely made possible by the tremendous growth of the internet in general, including on phones, tablets and smart TVs. We intend to stick to our core ad-free subscription model. As with our initial round of international expansion, we’ll get some things wrong and do our best to fix them quickly”.
Commenting specifically on China in a conference call, Reed Hastings, then company’s co-founder and CEO, said that it still need to get a licence before it can start to operate in the country and that it is not clear if it will do so. “If we go it will be a modest investment”.
Looking forward to launches in South Korea and Japan, he added that they would be big investments, along the lines of those in France, Germany and the UK.
Although Netflix is reluctant to provide take-up figures of its service in individual markets, it has revealed that it is now received in 5 million homes in Latin America.
David Wells, Netflix CEO, said that it would give out ‘milestone’ figures in other markets as it hit them.
Hastings said that reaching 60-90 million subscribers in the US remained a very achievable target, adding that internet video would be available in every US home in 10 years.
Hastings was also bullish about the prospects for UHD, which is now offered in a $12 package by Netflix.
Netflix gained a record 13 million new customers last year, compared to 11.1 million in 2013, with its global total standing at 57.4 million.
Total revenues in Q4 2014 amounted to $1.305 million and are focused to rise to $1,398 million in this quarter.
