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These Five Countries are Driving Netflix’s European Growth
Netflix is growing.
As of Q2 2015, the company has 41 million paid members in the U.S., its largest market. Source: Netflix.
And the company said it just added 2.37 million international subscribers in the second quarter. Source: Netflix.
That brings its total subscriber numbers to 65 million, with 23 million of those being international users. Source: Netflix.
And according to data from Digital TV Research, part of that growth is coming from the U.K., Sweden, the Netherlands, France, and Germany.
By the end of this year, the U.K. should have 4.9 million Netflix subscribers. Source: eMarketer.
And the other four countries should have a total of 5.4 million subscribers by that same time. Source: eMarketer.
This means that by the end of 2015 Netflix should have more than 26 million international subscribers — an increase of 57% year-over-year. Source: eMarketer.
That would give Netflix about 69.9 million subscribers worldwide, which is a 28% subscriber increase year-over-year.
But Netflix has its eye on even more expansion.
Earlier this year the company said it wants to bring its service into 200 countries by the end of 2016.
Which would be a huge increase over the current 50 countries the company operates in.
So far, it appears Netflix is on the right track.
The company said this week that…
“Our international segment is growing at a rapid pace. We did not add additional markets in Q2 but saw continued improvement across existing markets.” Source: Netflix.
But as the company expands, Netflix’s international markets will operate at a loss, until 2017.
So as the company builds out its services in Europe, and around the world, don’t expect big profits from those subscriptions just yet.
Because Netflix is playing the long game with its international endeavors.
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