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Netflix is About To Enter This Major Streaming Market

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Netflix is About To Enter This Major Streaming Market


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In just a few weeks, Netflix will launch in its first Asian market.


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Earlier this year the company said it would launch its service in Japan…


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And the company announced last week that the launch date will be September 2.


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But Netflix is expanding across the globe, so why is Japan so important?


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Because Japan will be doorway for Netflix to enter new Asian markets.


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The company will use Netflix Japan to create original content with local media creators, just as it does in the United States.


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And Netflix has even created its first general manager position outside of the U.S. for its Netflix Japan office.


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The streaming media company’s potential lies in the amount of homes with broadband connections in Japan.


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Which top 36 million.


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And there are some good reasons to believe Japan is ready for Netflix streaming.


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A 2014 comScore report said that Japanese viewers spend four times longer watching desktop videos — like YouTube — than U.S. users. Source: comScore.


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And a recent Wall Street Journal article noted that Japan’s average Internet speeds are the third highest in the world. Source: WSJ.


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That’s great news for Netflix, because the Federal Communications Commission says that higher Internet speeds correlate with higher data consumption. Source: FCC.


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But Japan isn’t a slam dunk for Netflix by any means.


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Hulu left the country after being there for three years, and local companies dominate the video content space.


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But Netflix’s focus on creating original content for Asian consumers, and Japan’s openness to video content should be a winning combination.


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In fact, the Netflix Japan launch announcement already boosted the company’s stock price last week. Source: CNBC.


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Now let’s hope Japanese consumers respond with similar enthusiasm.


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