Netflix to stream movies, shows in Latin America

Jul 05, 2011

(AP) -- Netflix is expanding its movie and TV show streaming service into 43 countries throughout Latin America in the online movie rental company's largest international expansion yet.

Analysts said the expansion was larger than expected. The company's stock hit an all-time high of $283.50 in morning trading Tuesday.

Netflix Inc. subscribers in Mexico, South and Central America and the Caribbean will be able to watch TV shows and movies streamed on a wide range of gadgets starting this year. The company did not announce a pricing plan or say exactly when the service will be available.

In the U.S., a streaming subscription costs $8 a month and customers can pay slightly more to get DVDs in the mail. As is the case in Canada, Netflix's service in Latin America will be streaming-only, with no DVD option.

Citi Investment Research analyst Mark Mahaney estimates that Netflix will be able to capture 8 percent of the Latin American and Caribbean market in the next 12 to 18 months, possibly less if it also launches in Europe and other regions.

That said, "there is absolutely no guarantee that (Netflix) will succeed in any of these new international markets, although we believe that Internet video streaming will become a major activity in each of these markets," Mahaney said in a note to investors.

The company is working on broadening its international reach as its service in the U.S. becomes more ubiquitous. As of March, Netflix had 22.8 million subscribers in the U.S. - about 34,000 more than the number of households subscribing to Comcast Corp.'s cable-TV service.

Netflix, which is based in Los Gatos, Calif., launched its streaming service in the U.S. in 2007 and in Canada last year.

If it does launch the service in Europe, Netflix would face competition with popular online movie rental company Lovefilm, which Amazon.com Inc. bought in January.

Shares of Netflix increased $14.01, or 5.2 percent, to $282 in midday trading after earlier hitting a record high of $283.50. The company's shares are up 61 percent so far this year, compared with just 6.3 percent for the S&P 500 index.

Explore further: NKorea outage a case study in online uncertainties

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Netflix video 'king' of US Internet traffic: study

May 17, 2011

Films and television shows streamed online by Netflix amount to nearly 30 percent of the content racing downstream on the US Internet during peak periods, according to a study released Tuesday.

Amazon buys European movie rental service Lovefilm

Jan 20, 2011

(AP) -- Amazon.com Inc. is buying Lovefilm, a European movie rental service akin to Netflix Inc. The deal announced Thursday heralds Amazon's entrance into a market where Netflix doesn't yet do business, and it left analysts ...

Wii becomes third console to stream Netflix

Jan 13, 2010

(AP) -- It's a triple crown for Netflix. Beginning in the spring, the Wii will become the last of the three current video game consoles to get instant viewing of Netflix movies and TV shows over the Internet.

Netflix adds to online movies with Relativity deal

Jul 06, 2010

(AP) -- Netflix Inc. is adding to the group of movies that its subscribers can watch online or over Internet-connected devices at the same time as they would have appeared on premium pay TV channels such as HBO or Showtime.

Recommended for you

Web outage hardly stirs Internet-free N. Korea: experts

16 hours ago

North Korea's Internet went down this week after an apparent attack but most of its citizens will not have noticed the difference in a country that does its level best to seal off foreign influence, experts say.

Who pulled the plug on North Korea's Internet?

Dec 23, 2014

North Korea's Internet was on the fritz for a second day Tuesday. But the US is staying silent on whether it launched a cyber attack as payback for the hacking of Sony Pictures.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.