Netflix, Inc. (NASDAQ:NFLX) has introduced a new feature which will allow customers outside of the United States to queue up videos to watch later. The new feature will be added in an update to the service. The addition of higher levels of usability to Netflix, Inc. (NASDAQ:NFLX) is key to increasing take-up in international markets.
“My List” appears on the Netflix, Inc. (NASDAQ:NFLX) home page and users can add to it by clicking a button. Netflix sorts the videos based on viewing preferences and the ratings on the videos. The addition of new features is as important to keeping users as original content is in securing new users. The twin arms of the company’s strategy appear to be working well together, but that hasn’t stopped it struggling in international markets.
Netflix international problems
Netflix, Inc. (NASDAQ:NFLX) is really pushing the international strategy as the one to secure growth. The United States’ market is quickly becoming saturated, and competition in the area is heating up. Hardware video streamers are said to be coming from companies like Intel Corporation (NASDAQ:INTC) and Apple Inc. (NASDAQ:AAPL).
The company is still having problems with uptake in Europe, with its most successful campaign being in the United Kingdom. In that market, however, the company is beginning to face more and more competition. Netflix’ business model has a couple of weaknesses that erode its moat in international markets.
Because content has to be licensed by the company in each market separately, it has little to no advantage over local business when it comes to those negotiations. The company’s brand, dominant in the United States, does not carry much weight outside that market. Businesses in new markets are also catching on quicker, being familiar with what happened America.
In recent weeks shares in Netflix, Inc. (NASDAQ:NFLX) have not been particularly buoyant. In the last month the company’s value has grown by just over 1%. At time of writing shares were trading at 259.70, down by just over 1% in today’s trading. The company’s 300+ P/E ratio and the growth problems that could be ahead have stymied investors.
Shares in the company have exploded since the start of the year however, with the company’s earnings reports providing much of the catalyst. Since January 1, shares in Netflix, Inc. (NASDAQ:NFLX) have grown by more than 189%.