Just weeks after we first learned how Netflix is performing in Poland, we now have an idea of its early impact in Romania.
Figures published by Media Expres for the month of January show that it got off to something of a flying start, securing around double the number of users, just via PCs, than the voyo.ro service operated by the CME-owned broadcaster Pro TV, which in the latter instance included smartphones and tablets as well as PCs.
However, this was just its first month of operation, when the service was being offered free of charge, and it will be interesting to eventually find out how it performed in the subsequent two months. In Poland’s case, there was a dip in February, followed by a recovery in March.
But Poland is an altogether different market to Romania, and in the case of on demand services much more competitive. It is also one in which its public broadcaster is starting to make an increasingly strong impression, something it has managed to do by recently making sure its on demand content is no longer offered by platforms other than its own.
The challenges Netflix now faces in CEE undoubtedly vary from country to country. There are nevertheless some common themes, including a lack of localised content. This will for certain be gradually rectified in such larger markets such as Poland and Russia, but could prove to be a stumbling block in other, smaller ones for some time to come.
Netflix, as was reported only earlier this week, may also find itself subject to 20% European content quota. However, this will require the approval of the European Council and Parliament, with the process likely to take some time.
It is also worth bearing in mind that Netflix’s close competitor Amazon Prime may soon also enter CEE, probably starting off in Poland. This will make life even more interesting for all concerned.