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These Five Countries are Driving Netflix’s European Growth

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These Five Countries are Driving Netflix’s European Growth


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Netflix is growing.


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As of Q2 2015, the company has 41 million paid members in the U.S., its largest market. Source: Netflix.


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And the company said it just added 2.37 million international subscribers in the second quarter. Source: Netflix.


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That brings its total subscriber numbers to 65 million, with 23 million of those being international users. Source: Netflix.


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And according to data from Digital TV Research, part of that growth is coming from the U.K., Sweden, the Netherlands, France, and Germany.


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By the end of this year, the U.K. should have 4.9 million Netflix subscribers. Source: eMarketer.


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And the other four countries should have a total of 5.4 million subscribers by that same time. Source: eMarketer.


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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.


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That would give Netflix about 69.9 million subscribers worldwide, which is a 28% subscriber increase year-over-year.


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But Netflix has its eye on even more expansion.


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Earlier this year the company said it wants to bring its service into 200 countries by the end of 2016.


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Which would be a huge increase over the current 50 countries the company operates in.


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So far, it appears Netflix is on the right track.


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The company said this week that…


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“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.


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But as the company expands, Netflix’s international markets will operate at a loss, until 2017.


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So as the company builds out its services in Europe, and around the world, don’t expect big profits from those subscriptions just yet.


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Because Netflix is playing the long game with its international endeavors.


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