Netflix downgrades Latino expectations
September 1, 2011
By Chris Forrester
Video-on-demand supplier Netflix has alerted analysts that it expects lower service adoption rates out of its Latin American markets “than those achieved in Canada” (its debut international market).
Canada saw Netflix launch in September 2010 and now has 967,000 subscribers as at June 31st.
“But still, we are very optimistic about what we can create and what will happen in Latin America”, stated Reed Hastings, Netflix’s CEO, who also confirmed that he would be launching a Latino service with “much more content” compared with that of Canada’s debut service.
Netflix has said it is wrapping up agreements with Latin American producers such as Telemundo, Televisa and Caracol TV, among others.
Hastings also pointed out that in Latin America the main focus in terms of marketing efforts will be assigned to the major markets, although the service will be launched in the whole region, since agreements with content providers have been negotiated at regional level.
Last July, Netflix announced that it will reach 43 Latin American countries and the Caribbean by year end. In the US, the OTT provider recorded 24.6m subscribers in June.