Netflix is clearly causing excitement in Central and Eastern Europe.
Earlier this week, reporters from at least three countries in the region – Russia, the Czech Republic and Slovakia – jumped at the ‘news’ that the SVOD service would launch there within the next two years. In each case, they were quoting Joris Evers, the company’s head of communications for Europe, speaking at the Panasonic Convention in Frankfurt.
Not having been to the event myself, I was not sure if the reporters questioned Mr Evers in detail or just quoted from a presentation. However, soon after we carried the story Russia remains a Netflix target in Broadband TV News, I was contacted by Mr Evers, who told me that all he had said was that Netflix plans to complete its global expansion in the next two years. This was a repeat of the message that the company had delivered in its Q4 results in January.
He added that several journalists from specific countries – Russia, the Czech Republic and Slovakia – asked whether Netflix would launch there. “The answer is that we intend to be global, so yes. There’s nothing to share beyond that”.
That, in my book at least, implies a confirmation; in its results, Netflix said it would eventually expand to 200 countries, which is roughly the accepted number in the world today.
The real story behind this is that there is genuine excitement, mixed with perhaps no little apprehension, about the prospect of Netflix launching in Central and Eastern Europe. On a personal level, I felt this strongly from local delegates when attending the Hungarian cable convention in Budapest last autumn.
For Russia, however, there is an additional significance. Less than two years ago, before the current crisis blew up, local on demand services were making waves in the country – there were already around a dozen there at that time – and it was felt there was no room for Netflix.
Now, the way it has been reported by the local media is that despite the crisis Netflix is still interested in Russia and will launch there.
Given the level of competition that exists in the country, Russia will be challenging. But so have been other markets, which Netflix has gone on to perform really well in.
