Netflix Debuts in Sweden and Denmark
Netflix (NASDAQ: NFLX) continues to expand internationally, despite a stock price which has gone from $300 last July to the current price of around $67. The video service is now available in Denmark and Sweden and will also debut in Norway and Finland this week. Interestingly, the company's prices will be higher in the new international markets.
For example, in Sweden, the service costs 79 krona per month, which is the equivalent of $12.00. In Denmark the price is 79 krone, or around $14.00. This compares to the $8.00 per month that Netflix charges its U.S. customers for video streaming. Other international markets where Netflix has a presence include Canada, the United Kingdom, Ireland and dozens of Latin American countries.
Overall, the company has around 3.6 million subscribers in other countries, compared to 26.5 million subscribers in the U.S. The service may do well in other countries where American content is in demand and there are fewer options for accessing content in general.
Certainly, Netflix is an attractive option on price and ease of use, but the company has struggled to add high-demand content while keeping costs under control. The international expansion of Netflix is critical to the future of the company. The opportunity is very substantial.
Unfortunately, however, it is also extremely expensive and could saddle Netflix with a loss this year. While Netflix may yet have a very bright future in front of it, it faces significant challenges in both expanding overseas and upgrading its streaming content offerings while also controlling costs.
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