11/14/2023 0 Comments Netflix pricing strategy failureIt exemplifies how choosing a similar market to your home country can be a relatively easy first step in your international expansion plans. The choice of Canada proved to be an excellent success for Netflix. However, despite the initial relative lack of content, it took the company less than a year to attract one million subscribers, roughly three per cent of Canada’s population. According to Canadian Business Online, in the United States, by 2012, there were 10,625 distinct Netflix titles, whereas in Canada, there were only 2,647. Pricing was an essential consideration to win market share, and the initial subscription fee was priced at $7.99 per month, which Netflix CEO Reed Hastings referred to as “the lowest, most aggressive price we’ve ever had anywhere in the world.” This was a key initiative in Netflix’s business model to attract users quickly.Įven with the low price tag, Canadian content availability was minimal. Netflix officially launched into the Canadian market in September 2010, kickstarting its first foray into international markets. This made it easier for the company to expand into Canada and tailor its content offerings to suit this new market. This was because the market was very similar to the United States regarding culture, language and geography. One of the countries Netflix first considered for its global expansion was Canada. When entering into new countries, Netflix initially chose its following markets based on similarities to limit potential cultural and geographical challenges. How Netflix Carefully Chose Its International Markets This article will explore three key areas that helped the streaming service achieve success, namely:Ģ. Starting in just one country, the United States, Netflix has expanded into over 190 countries in just seven years!ĭespite the current challenges Netflix is facing concerning new subscribers, the company managed to expand globally due to careful planning and execution successfully. Netflix is a prime example of a company successfully expanding its operations internationally.
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