As Netflix settles in to serve 43 new countries- the result of an expansion into Latin America– the company says it expects the venture to be profitable, but not for a good while.
Netflix is also expected to conquer Europe later this year, according to “people familiar with the matter not authorized to discuss Netflix’s plans publicly,” and is believed to be kicking off with Great Britain and Spain. It was not disclosed by those sources whether the move is likely to be streaming only, as in the Latin American market, or inclusive of physical media like the US one. The company first broke int0 Canada after the US about a year ago, and the venture has been so successful that Netflix may break even or perhaps turn a small profit in the territory by the end of this quarter.
But the streaming giant isn’t counting its chickens in the new, massive Latin market- Netflix CEO Reed Hastings addressed the new territory launch- which took place between September 5th and September 9th starting with Brazil- and said that he believed it would be about two years before profitability would be achieved in Mexico. Hastings predicted:
“We are going to lose money for a while… It will take a lot of subscribers to get to profitability.”
Pricing in the new market has been set at $7.99 per month for access to Netflix’s massive cache of streaming content- on par with what the service costs in the US.