Netflix Expands into Latin America, What is the Point?

Netflix has recently announced that it will add 43 countries in Central and South America, and the Caribbean to its list of supported locales. Members will be able to access in Spanish, Portuguese or English on a range of Netflix support devices, the company will also wrap up its North American expansion by streaming flicks into the heart of Mexico. Interested users can leave their contact information with the company and receive reminders when the service is ready. This is the milestone as the company expands into the international market.

Netflix established in 1997 and is headquartered in Los Gatos, California. It started its subscription service in 1999 and by 2009 it was offering a collection of 100,000 titles on DVD, surpassing 10 million subscribers. On February 25, 2007, Netflix announced the billionth DVD delivery. As one of the most successful dot-com ventures, Netflix mailed about 190,000 discs per day to its 670,000 monthly subscribers. The company’s published subscriber count increased from one million in the fourth quarter of 2002 to around 5.6 million at the end of the third quarter of 2006, to 14 million in March 2010. Netflix’s growth has been fueled by the fast spread of DVD players in households; as of 2004, nearly two-thirds of U.S. homes had a DVD player. Netflix capitalized on the success of the DVD and its rapid expansion into U.S. homes, integrating the potential of the Internet and e-commerce to provide services and catalogs that brick and mortar retailers could not compete with. Netflix also operates an online affiliate program which has helped it to build online sales for DVD rentals.

Netflix offers Internet video streaming ("Watch Instantly") of selected titles to computers running Windows or Mac OS X and to compatible devices. Internet video streaming comes at no additional charge with Netflix’s regular subscription service; however, only a portion of Netflix’s content is available via the "Watch Instantly" option. In its simplest form, video is streamed to the user using standard PC hardware, and requires Microsoft’s Silverlight software to be installed. Viewing is initiated by pressing a "Play Instantly" button, and played back on the PC monitor. Films can be paused or restarted at will. According to a 2011 report by Sandvine, Netflix is the biggest source of North American web traffic, accounting for 24.71 percent of aggregated traffic.

As the arch rival of Netflix, Hulu is currently in process of being acquired by Google, if the deal is done, then the company’s business will be instantly expanded, and will be the threat to Netflix. But now, Hulu’s sevice still focuses on United States and its overseas territories, therefore now is the best time for Netflix to expand into the international market.  本文轉載brothersoft,編輯僅做翻譯。詳細請查看原網站文章。

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