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,
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV