Netflix Inc. (NASDAQ: NFLX) is opening up its service in some of the most broadband intensive markets in the world. The company will start service in Singapore, South Korea, Taiwan and Hong Kong as its spreads its on-demand streaming, original programming and cord cutting model around the world.
The company reported:
Netflix, Inc. announced today it will expand into South Korea, Singapore, Hong Kong and Taiwan in early 2016 as it moves to complete its global rollout by the end of next year.
Once launched, Internet users will be able to subscribe to Netflix and instantly watch a curated selection of popular TV shows and movies in high-definition or even Ultra HD 4K on nearly any Internet-connected screen. Netflix first became available in Asia earlier this month with the start of service in Japan.
According to the World Bank, Internet penetration in these nations is high. So is Internet speed. Statistica reports that South Korean has the fastest broadband speeds of any country in the world, and Hong Kong is in the top 10.
Netflix supposes its model is portable and will work as well throughout the world as it does in the United States. So far, it can support that claim. At the end of the second quarter, it had 22.3 million subscribers outside the United States, along with the 42.3 million in America. Whether Netflix gets accepted in every country it has entered depends on how people are used to using premium content, and how much competition there is.
Netflix, despite its growth, has struggled with Wall Street. Shares trade at $95 in a 52-week range of $129 to $45.
Netflix management will not know until its model faces market rejection in some region whether it has gone a bridge too far.
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