Netflix, Inc. (NASDAQ:NFLX), world’s leading on-demand streaming media provider has launched in Europe. It was a little bit worrisome to pursue this path due to strong cultural differences on different sides of the Atlantic, but the temptation of almost doubling its addressable subscriber market was difficult to resist. CNBC had Richard Greenfield, BTIG media and technology analyst, as a guest to inform about the issue.
“[…] so the question is: how well will US content export, especially television shows. I think Netflix is obviously betting it will work very well. That doesn’t mean they’re not licensing a significant amount of content in France, Germany and some of these European markets,” said Richard Greenfield.
It’s a matter of finesse to bring American shows to the Europeans and it will require high amounts of investments in terms of marketing, research and probably pilot versions of some shows and all this might pile up to be not that profitable. Consequently, Netflix, Inc. (NASDAQ:NFLX) might just pursue the most famous streams in its repertoire that caught the public’s attention leading a more passive, yet more profitable form of business. On the other hand, Netflix, Inc. (NASDAQ:NFLX) might find it worth to try and establish a sustainable competitive advantage with respect to any media company, even if some holes might appear in the budget during the near future. In longer terms having a greater market coverage might prove as the best move.
Europe is not a new territory for Netflix, Inc. (NASDAQ:NFLX) as it was already present in the northern part of the continent, yet it’s not that much of a home to be completely sure in its proceedings. The first rolled out was France and as many would have expected, there were some intense negotiations with telecom providers and Bouygues Telecom was the first one to break the ice, France’s third by size. Probably others will follow through and Netflix, Inc. (NASDAQ:NFLX) will have an easier upcoming future.
Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.