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Netflix world domination plans continue apace

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If you've yet to climb aboard the Netflix bandwagon then it's probably for one of three reasons:-

  1. You simply don't watch enough TV/Movies to warrant the subscription.

  2. You're using a friend or family member's account and don't see the point in forking out when you can get it for free (I have at least 7 people currently using my Netflix account, which has led to some incredibly bizarre “Suggestions”).

  3. Netflix is yet to be available in your country.

If reason three is something of a sticking point for you, then according to the video streaming behemoths themselves, you might not have to wait much longer, as a shareholder letter accompanying its most recent earnings report (which we'll get to later), has insinuated that Netflix plans to complete their global expansion (or as I read it, world domination) within the next two years. The letter also states that although Netflix is currently only available in around 50 countries, it plans to be available in as many as 200 by the end of this proposed expansion. The next regions on the agenda are reportedly New Zealand and Australia, with more to follow by the end of 2015. North Korea here we come?

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When it comes to slightly more ambitious regions such as China, however, Netflix are “Still exploring modest options,” one of which is to operate a smaller service in China based on “Original and other globally-licensed content.” Markets beyond the US, meanwhile, are finally starting to become profitable for the company, with material profits expected from the UK, Ireland, Canada and Latin America from 2017 onwards. These markets could prove particularly important for Netflix given the recent decline in new US subscribers, especially considering there are currently 39.11 million subscribers in the US compared to just 17.99 million internationally.

A shareholder letter accompanying its most recent earnings report has insinuated that Netflix plans to complete their global expansion within the next two years

That's not to say Netflix are giving up on their native territory though. In a statement, they said that it's “Increasingly clear that virtually all entertainment video will be Internet video in the future,” and that they “Believe there is big growth ahead in the U.S. market for Netflix,” even if they might not get there in a straight line of 6 million annual net adds. Indeed, the company said it added 1.9 million new U.S. subscribers in the last quarter of 2014, compared to 2.3 million in the same period of 2014. Still, they say they will continue to improve their “Content, marketing and service,” in order to eventually achieve “Must have status in most households.”

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With the popularity of the service's original shows such as Orange is the New Black, House of Cards and Marco Polo in overseas markets, Netflix is confident that it can enjoy similar successes further afield, but CEO Reed Hastings has cautioned that it is “Easy to over generalise” from their experiences with Western Europe and Latin America. He said that he understands that “Not every piece of content will carry equally well,” so they plan to augment Western, Hollywood and British content “With all kinds of local programming” in each new market. What this means specifically for regional programming is unclear, though was anyone else thinking cheesy telenovelas in Mexico and depressing detective dramas in Finland?

Netflix's fourth-quarter and full-year earnings numbers for 2014 drastically beat analyst expectations

In related news, Netflix's fourth-quarter and full-year earnings numbers for 2014 drastically beat analyst expectations, with the company reporting full year earnings of $4.32 per share on revenues of $5.5 billion. That compares to $1.85 per share in earnings and revenues of $4.4 billion in 2013. Another big coup was also scored recently when it was announced that the controversial satire, “The Interview,” will be hitting the US and Canadian Netflix services this coming Saturday (January 24). This is no doubt part of Sony's plan to recoup some of the film's $46 million production costs after it was pulled from cinemas and given a limited online release late last year.

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Benjamin Hiorns is a freelance writer and struggling musician from Kidderminster in the UK. He actually rather enjoyed The Interview, though he is something of a man-child.

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