The streaming media service provider, with its expansion spree has managed to gain a lot of popularity in some of the major countries of the world however in a few regions, it will need to try a little harder to attract the right audience.
According to a report, over 1.4 million households subscribed for Netflix Inc.’s service in 2015 in United Kingdom while nearly a quarter of households in the region are subscribed to the service now. In the last few months 2015, over more than 5 million households subscribed for the service while in 2014 over 14% of the total so.
In comparison to its competitors, Amazon Prime and Sky, the streaming media giant is doing incredibly well in the area; furthermore it is continuing to grow at a faster pace than all the other video streaming services in the region. As per the data, over 1.4 million households in UK have Amazon Prime, on the other hand, over 1 million have subscribed for Sky TV’s service. This data has been based on a survey conducted by UK’s Broadcasters’ Audience Research Board (Barb). It stated that Netflix is ahead in compared to other services by a significant margin and it is growing more than all the other service providers.
The report further suggested that the customers who are subscribed to either Netflix or Amazon are likely to be subscribed to traditional television services as well from various cable TV providers including Sky, Virgin Media and BT.
On the contrary, the video streaming leader had announced earlier this year that will be make its service available in all the major countries of the world except for China. It has managed to conquer most of Asia Pacific however gaining popularity in these regions will not be as easy as it seems to be. The major obstacles that are in the way could be the region’s size, different regulations that are followed in those regions, language barrier (language based content) and also competition that it will receive from local service providers.
The first problem to be taken into consideration is the language barrier; in most of these regions people have subscribed to traditional cable service where they get to access content of their language. However, in Netflix’s case, it needs to work on content for all these regions where it is providing its service in order to gain the popularity that it has received in the United States and Europe.
Local content is what majorly matter when entering a new region and can prove to be a huge hindrance in the way of success. Some of the regions that the company had targeted, that might have a language barrier issue are South Korea and Hong Kong as the audience in these specific regions prefer to watch content in their language.
Jonathan Friedland, the chief communication officer told Bloomberg that the on-demand subscription provider’s content does well in the United States but in other countries great TV is being made. Since that is the market that Netflix has decided to target, it will need to produce content that appeal to that audience as well which means spending millions of dollars again.
However, the company stated that due to its expansion spree last year, the company gained a humongous subscriber base.