Netflix have announced that they will launch a service in the UK in 2012. Specific details such as available content and the critical price plan will be revealed closer to the launch date. After the recent misfire that was Qwikster and a price increase Netflix shares have taken a dive dropping more than 60% this year.
I can see the logic of expanding overseas, a new market means potential new customers. However Netflix will face tough competition from the current market leader LoveFilm which was purchased by Amazon at the start of the year has over 1.4 million subscribers in the UK. Other streaming services that Netflix will need to compete with include the BBC iPlayer, the ITV player and 4oD all of which offer a catch-up services from the previous weeks television for free. Subscription based television firms like Sky and Virgin Media also have their own streaming services and offers content linked to their customers subscriptions.
Netflix could be successful, but it will be a difficult task to carve out a section of the market and I don’t think that they will survive for long.
Source: BBC News