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Netflix is About To Enter This Major Streaming Market
In just a few weeks, Netflix will launch in its first Asian market.
Earlier this year the company said it would launch its service in Japan…
And the company announced last week that the launch date will be September 2.
But Netflix is expanding across the globe, so why is Japan so important?
Because Japan will be doorway for Netflix to enter new Asian markets.
The company will use Netflix Japan to create original content with local media creators, just as it does in the United States.
And Netflix has even created its first general manager position outside of the U.S. for its Netflix Japan office.
The streaming media company’s potential lies in the amount of homes with broadband connections in Japan.
Which top 36 million.
And there are some good reasons to believe Japan is ready for Netflix streaming.
A 2014 comScore report said that Japanese viewers spend four times longer watching desktop videos — like YouTube — than U.S. users. Source: comScore.
And a recent Wall Street Journal article noted that Japan’s average Internet speeds are the third highest in the world. Source: WSJ.
That’s great news for Netflix, because the Federal Communications Commission says that higher Internet speeds correlate with higher data consumption. Source: FCC.
But Japan isn’t a slam dunk for Netflix by any means.
Hulu left the country after being there for three years, and local companies dominate the video content space.
But Netflix’s focus on creating original content for Asian consumers, and Japan’s openness to video content should be a winning combination.
In fact, the Netflix Japan launch announcement already boosted the company’s stock price last week. Source: CNBC.
Now let’s hope Japanese consumers respond with similar enthusiasm.
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