- Title: ARGENTINA: Netflix set to expand into Latin American and Caribbean market
- Date: 8th September 2011
- Summary: COMPUTER SCREEN SHOWING NETFLIX APPLICATION CLOSE-UP OF HASTINGS SPEAKING A SCENE FROM A MOVIE ON A COMPUTER SCREEN BEING PLAYED OVER NETFLIX
- Embargoed: 23rd September 2011 13:00
- Keywords:
- Location: Argentina, Argentina
- Country: Argentina
- Topics: Business,Arts,Industry,Technology
- Reuters ID: LVA248S5UTTB9YFTUXPIK27AYB5M
- Story Text: Netflix will fight piracy with quality while it expands its online streaming service to Latin America and the Caribbean, the company's Chief Executive Officer said in an interview on Wednesday (September 7).
The company launched the region's online streaming service in Brazil this week where customers can pay roughly $9 a month to access the content.
They expanded in Argentina, Paraguay and Uruguay Wednesday and expect to be in more than 40 other countries by September 12.
"We're about 25 million subscribers in the U.S. But our dream has always been to be a global service like Skype or YouTube that anybody can use from around the world and it's taken us a while to license each content. And in each new market, we'll have to learn what are the best ways to operate and for us this is the beginning. Our view is that it's good to get started and improve and improve," Netflix CEO and co-founder Rick Hastings told Reuters.
He said the company is investing millions into the region but expects to make it back within two years and plans to offer content based on the markets tastes as they analyse which videos customers most view.
Although piracy remains a challenge because of the endemic knock-off DVD's sold on the streets and the widely available pirated online content, Hastings remains confident viewers will turn on to Netflix for its quality and wide selection.
He said customers in Argentina for instance, will pay $39 pesos ($8.80 U.S. dollars) because of the ease of use and the content the service offers.
Over the next six months, the company plans to double the amount of content, including Argentine films and TV shows.
For now, Netflix began its operations in the region with broad content that appeals to most viewers, including family films such as Apollo 13.
The company also plans to expand operations in Europe and Asia.
"They're both very attractive. In Asia, there's so many people and so many Internet users but very high piracy also and in Europe, not as fast growing an economy, slower, but more piracy. Both will be important to us as we expand and we just have to figure out which order to do, we'll do one and then the other" Hastings said.
Under the leadership of the well-regarded Hastings, Netflix shares have tripled since January 2010.
But the rocketing price and recent stumbles, including a July decision to raise some prices, have drawn short sellers betting the momentum cannot continue.
Netflix shares plunged last Friday, a day after U.S. Pay-TV operator Starz Entertainment decided not to renew its contract with the movie-rental company.
The collapse of talks with Starz highlighted investor concerns that Netflix may lose its edge in online rentals.
But Hastings dismissed the importance of the deal, which includes exclusive rights to first-run Sony Corp and Walt Disney movies, for streaming on Netflix saying it made up less than 10 percent of content in the U.S. - Copyright Holder: REUTERS
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