Netflix, Inc. (NASDAQ:NFLX) has entered Germany just after it entered France. The company posted on Twitter to announce that the curious customers can register through netflix.de. Entry-level subscription fee is €7.99 per month, similar to the other markets where the company is already established. The online video streaming company is gradually expanding its on-demand television and movie streaming service across Europe.
Limitations over content in Germany
Netflix is already present in France, and has announced the expansion in Germany to increase its user base, revenue and international reach. Within the Tweet, the company said that it will also enter Austria and Switzerland soon.
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Netflix has an impressive archive of original content, such as House of Cards, Orange is the New Black and the recent animated comedy BoJack Horseman. Both the House of Cards and OINTB are coming up their next seasons, which would be helpful in expanding the user base. It can be expected that Netflix content in Germany will be nothing like the United States due to the licensing restrictions. For instance, in the United Kingdom, the range of content is significantly less.
Netflix European quest
In May, Netflix announced that it will expand in Belgium and Luxembourg by the end of this year. The streaming company has a subscriber base of 50 million in 40 countries. There is a lot of action for the company in Europe as its investment will affect the bottom line. The company is already present in U.K., Ireland, Nordic countries and the Netherlands, and posted revenue of $400 million in 2013, according to corporate filings made in Luxembourg, which constitutes half of the company’s overall international revenue for the year.
According to the CEO Reed Hastings, the company is already planning to expand to Eastern and Southern Europe next year and is targeting to be the top force within three to five years.
There is no shortage of competition for Netflix in France as well as Germany. Rival Vivendi SA in France is offering local content through its pay-TV unit Canal Plus along with setting up bus-kiosk ads advertising. Likewise in Germany also several competitors have started offering more content or have lowered the prices before Netflix could reach the country. Netflix has tried to convince the local rivals in European countries that it will help the local production.