Netflix eyes next targets
September 19, 2014
Reed Hastings, Netflix CEO, told the CTAM cable marketing summit it will decide in 2015 which European territories will be next in its five year plan to expand globally.
Hastings, in Europe to promote Netflix’s latest six European launches, said moving to more territories will help it to monetise and do “more original content.” “Our pattern for the next few months… we’ll spend a lot of time in France and Germany trying to learn, improve and adjust. Then we’ll decide next year to either expand more in Southern Europe, [or] central and eastern Europe,” said Hastings.
He said Netflix’s strategy was to try and breakeven in a new country in three to five years, and to establish itself in a third of households within seven.
“We continue to invest very heavily and are betting on future growth throughout the world in terms of membership. So we’re relatively high-leveraged, not financially, but in terms of content cost and content commitments,” he said.
Hastings revealed that around two thirds of Netflix viewing is now TV series compared to and a third movies, and two thirds of viewing is done on a wide-screen television with the rest on mobiles, laptops and tablets.
He confirmed drama would remain the focus, and that Netflix was not interested in diversifying into areas like sports, music or UGC.
Netflix has this week launched in France, Germany, Austria, Switzerland, Belgium and Luxembourg.