Currently with 74 million subscribers, Netflix now offer services in India, Russia, South Korea and Turkey among others. This means tripling the number of markets in which mainly operates in the US and Europe.
The move also means the ultimate challenge to the broadcast and cable television. Its CEO Reed Hastings said at the CES show in Las Vegas that “the world is witnessing the birth of a new global network of Internet TV. He said the only major market that lacks is China, which aspires to be in the future.
This expansion is a serious threat to all media groups because the video service streaming offers on-demand Netflix, which includes original movies, shows and series, has had a profound effect on the way people consume media and look.
In the United States, the popularity of the company has contributed greatly to people cutting their commitments packs cable or satellite television to adopt a cheaper option and on-demand.
In contrast to the fall in the value of the shares recorded their peers in the business (5.7% in 2015 according to S & P) the Netflix rose more than 140% in the same year. On Wednesday, after news business expansion, shares rose 9.3% to US117,68.
Hastings said at CES that it is time to offer your Netflix video service streaming in all countries. “There are 3,200 million people worldwide who use the Internet and of those, 2,000 million live in developing countries. In 2000, there were only 400 million that were connected to the Interne. An impressive growth.
Netflix is the first company to mass market launched a subscription service videos, but in recent years the competition grew significantly. Amazon invested $ 1,300 million in 2014 on production of original series for Prime video service and plans to double investment.
Hulu, a service streaming of Walt Disney, 21st Century Fox and Comcast, also increased investment in production of original programming. Hulu works only in the US but international expansion projects.
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