Netflix, Inc. Ready To launch Its Services In Russia

The expansion spree is not going to be over any time soon as it has to be in over 200 countries by the end of the year.

A report by Izvestia, a Russian Newspaper stated that the United States video streaming media giant is all set to launch its services in Russia later this month. It further stated that initially the service will be accessible through set top boxes and smart television sets. The country has over 97 million internet users which makes it a highly potential market for Netflix, Inc.  

Vitaliy Svistunov, the Smart Television manager for South Korea LG Electronics stated that it was hoped that more licensed content would be available in Russia which will give a sense of consumer subscription in the country. This would allow the users to get used to this subscription model. However, Netflix has not year revealed any information regard the launch of its services in the country.

By the end of 2016, the media streaming organization has promised to be available in over 200 countries. In the previous year, it managed to take over a number of markets including Italy, Japan, Australia and Spain and for the current year its target is to be in Singapore, South Korea, Hong Kong and Taiwan.

This week a conference will be held in Las Vegas by the name of Consumer Electronics Show 2016 and according to news the online video streaming business is expected to reveal its launch in India during the conference. However, it has not disclosed any information regarding its entry in India as yet either. The media company is working on extending its original movies and series content so it is highly essential to be in as many countries as possible to capture the right audience.

Furthermore, another announcement suggested that it will increase its production of original shows and movies to more than 30 in 2016 and also will work on providing original content for foreign subscribers. As per the latest earnings report released by Netflix, it current has over 69.2 million users in over 40 countries. Out of these subscribers, 26 million are international subscribers who reside outside of the United States.

In 2015, Netflix stock rose by as much as 134% as per the data from S&P 500 Captial IQ. However, it did not always exceed the earnings expectations and neither did it always report positive revenue but since Reed Hastings, the CEO, managed to acquire an excellent user growth, none of the above things mattered. For the current year, the main goals of the company still revolve around global subscriber growth and large scale production. These goals don’t leave much room for big profits and positive cash flows anyway.