The company, whose stock lost 70% of its value just in the past three months, is so confident in the future of its streaming business overseas that it is even willing to take a loss in the new year. But given 2011 was a year when Netflix turned a blind eye to customer and investor dissatisfaction, failing at its international strategy could ultimately destroy the company's growth prospects and further erode management's credibility.
Netflix plans to launch a streaming service similar to its $7.99 U.S. plan in the U.K. and Ireland in early 2012 and is currently working to secure streaming deals in the regions. It has already reached agreements with Miramax, Lions Gate, BBC and MGM for television shows and films.
This will be Netflix's third major push outside the U.S., having launched a streaming service in Canada last year and in Latin America and the Caribbean in September.>L10 Cult TV Shows Netflix Should Revive Netflix's expansion into the U.K. and Ireland will be very different than its launch in these other regions, which were relatively uncharted territories. In the U.K. and Ireland, Netflix is up against Amazon's (AMZN) LoveFilm, which has already laid the groundwork in those regions and continues to ramp up its offerings. Last Wednesday,
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