While Netflix’s international business is yet to turn a profit, SNL Kagan sees strong growth, according to calculations made by the analyst.
At the close of 2014, international paying subscribers sat at 16.8 million; Canada is the largest market, closely followed by Brazil.
The Netherlands, which launched towards the end of the third quarter of 2013 saw the strongest year on year growth. It’s now the fifth largest market for Netflix, followed by Germany, Sweden and France.
“Since the service launched in international markets during 2010, Netflix’s percentage of subscribers outside of the US has dramatically changed. At year-end 2010, just 1.9% of the total was in non-US territories, compared to 30.8% at the end of last year,” reported Kagan.
Last week Netflix said its international base had risen to 20 million and announced a shift in its marketing strategy towards international.
Netflix is seeking to operate in 200 countries by the end of 2016 (Netflix is currently in more than 50 countries). The international division is not profitable, however, losing $159.8 million last year, although that is an improvement over its 2013 loss of $274.3 million. Netflix estimates that the international division will be profitable overall by 2017.
