Netflix International Subs to Reach 17 Million by End-2014

LONDON: After having launched in six European countries in the last few months, Netflix is expected to achieve 17 million paying subscribers with its international operations by the end of the year.

At the end of September, Netflix had 14.4 million international subs. Comparatively, its U.S. subscriber base was 36.2 million in September.

Netflix has been available in Canada since September 2010 and has garnered 3.5 million subscribers there. In Latin America, where the service has been present since October 2011, there are 4.9 million total subs, with Brazil representing the largest subscriber base there (2.17 million). There are around 3 million paying subscribers in the U.K. and Ireland, where Netflix launched in January 2012. In the Nordics, where it's been present since October 2012, the subscriber base is around 2 million.

Of course, these figures are smaller in the newer country launches. In the Netherlands, which received Netflix in September 2013, there are around 700,000 subs. In September of this year, Netflix rolled out to six new countries: Germany (125,000), France (100,000), Austria (30,000), Belgium (30,000), Switzerland (25,000) and Luxembourg (10,000).

Netflix has announced plans to launch in Australia and New Zealand next March. However, more than 200,000 Australian homes already subscribe to the U.S. service.

Simon Murray, principal analyst at Digital TV Research, said: “We have made several adjustments to our previous estimates [based on the June results]: subscriber numbers are now a lot higher in Latin America (and a little higher in Canada). Subscriber numbers are now a lot lower in the U.K. (and a little lower in the Nordic countries).”

He continued: “We underestimated Latin America last time due to the historic payment problems that Netflix encountered (low credit card ownership; little electronic banking; low broadband penetration, etc.). Netflix has introduced simpler payment methods (such as prepaid cards) which has boosted take up. However, economic slowdown is expected in the region, especially in Argentina and Venezuela, which could hit Netflix take-up.”