It looks like in 2011 more countries will be able to get their fill of streaming media courtesy of Netflix Watch Instantly, but the only question is where it’s going to be.
Speaking with the CBC (Canadian Broadcasting Company) last week, Netflix spokesman Steve Swasey would not reveal how many subscribers the company had in Canada, but he did say, “After a short period in Canada we’re now talking about other regions in the world, so that’s a good indicator.” Mr. Swasey went on to add, “We’re extremely pleased with the reception in Canada and … based on the early success of Netflix.ca we’re going to continue our international expansion next year and we’re going to allocate significant dollars to it.”
The company has stated that it expects its Canadian expansion to be profitable by the first anniversary of its launch in Sept. 2011.
Further evidence that Netflix is looking to expand to other countries comes from AdWeek that says the company has been in talks with advertising firms in Asia, Europe and Latin America, and that all three regions are under consideration for expansion. It is unlikely that in this early stage of international expansion that the company will attempt more than one launch at a time, but there isn’t anything to say it would go with staggered launches through out the year.
As Netflix obviously shifts its focus more and more away from the DVD side of its operations, the studios have become a bit more nervous about how streaming could potentially cut into physical media sales. If the company is focused on getting onto as many TVs and computers as possible in the coming year, don’t be too surprised if we hear about Netflix paying more and more for rights this year. While the company may be enjoying explosive growth, it isn’t going to go unnoticed by the studios, and they are surely going to want a larger piece of the pie.
What say you? Is Netflix expanding too fast for its own good?