Netflix on Tuesday announced that it would expand its service into six European countries and promised video service to be launched by the end of the 2014.
Netflix wants to expand its service to the International market and the company announced that it would be offering monthly subscriptions in Germany, Austria, Switzerland, France, Belgium and Luxembourg. However the company did not mention the prices and date for the launch of the service. Netflix subscription in France would be launched by mid-September and would cost about €10 (approximately $13) per month, according to a report in Le Figaro, a French daily.
David Wells, Chief Financial officer of Netflix stated that the company would stay in line or slightly behind its overall revenue while continuing to expand its reach and content offerings and Netflix’s international operations would be profitable by the end of 2014. Netflix seeks to increase its revenue through standard streaming package as new subscriptions will see a $1 increase in the US, £1 in UK and €1 in European countries. Rates will remain unchanged for existing subscribers for two years expect Brazil were the increase would be added with future subscriptions after one year.
“Netflix would keep its spending in line with revenues, and that it would likely split the additional revenue rolling in from the rate increase between investing in additional content, both licensed and original and expanding its margin,” said Wells.
Launched in 2007, Netflix has over 48 million members in 40 countries with 13 million outside U.S. Netflix will have to work hard in Germany due to the well established companies like Amazon, Watchever and Maxdome streaming service.
Stay tuned for more updates on this story. If you live in one of these countries, then you can go to Netflix.com and signup for the update on launch in your area.
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