Netflix Dives Deeper Into Europe Despite Murky Waters

is pressing forward with its European expansion this year despite concerns about the region's fragmented digital market and questionable demand in some nations. The internet-based subscription service has seen an influx of new subscribers since rolling out its services to foreign markets, but the firm's profit has yet to reflect the benefits. However, the company says its international rollout is a key part of its long term growth strategy and that it will soon reap the benefits.

By the end of 2016, Netflix is planning to make its service available in 200 countries worldwide, including its

into Italy, Portugal and Spain. While Europe will offer the company a vast pool of new subscribers, the continent's fragmented market and copyright rules are also expected to chip away at the bottom line. The firm will likely be met with a plethora of copyright rules and royalty payments that will make operations costly.

Another concern for Netflix is the fact that European regulators are in the process of revamping the rules governing the region's digital market. While policymakers' vision of a united market with seamless cross-border trade appears to be a benefit for Netflix, the company will probably find itself under the microscope much like internet giants

,

and

. Many believe European regulators have targeted US firms in an effort to level the playing field and promote the region's own struggling tech industry, creating a further obstacle for Netflix's impending expansion.