Netflix to reach Spain and the UK in 2012
Wednesday 24 August 2011
Netflix, the US home delivery service for film and television show rentals by DVD and on-demand streaming, plans to launch in the UK and Spain during the first half of 2012 and will explore expanding into more European countries and Asia.
After extending the service into Canada in 2010, Netflix - which has 25 million subscribers in North America - also announced last month it will move into 43 Latin American countries within 2011.
The company's CEO and founder Reed Hastings stated that international expansion is key for Netflix's future growth.
Netflix is currently in negotiations with the studios to obtain rights for the Spanish and UK markets, according to a report in the Los Angeles Times, in order to compete with LoveFilm, now owned by Amazon, which has 1.6 million members in Europe.
Spain will be a test market to determine if people will pay $8 per month to view films. Local content may also be included. Studios may be unwilling to license product due to the high volume of piracy.
Other countries being analyzed, per the LA Times, including South Korea, the Netherlands, Belgium, Luxembourg and the Scandinavian nations - places with high broadband Internet - but a Netflix spokesperson would not confirm details.
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