Netflix’s International Penetration Is Sky-Rocketing
In our ever-shifting media industry, Netflix has topped the leaderboard in the U.S. A study commissioned by Mark Mahaney of RBC Capital Markets confirms it.
When 1,500 U.S. adults were surveyed, 57% of respondents reportedly watched Netflix. YouTube garnered 51%, Amazon Video garnered 46%, and Hulu garnered 33% shares.
Netflix’s high popularity is a result of strong levels of customer satisfaction. It was found that 68% of subscribers were either extremely or very satisfied while only 4.5% said that they were slightly or not satisfied at all satisfied.
But Netflix will have to boost its international adoption levels as it comes nearer to saturating the U.S. market in order to continue its high growth.
According to the recent data, apparently, Netflix is on its way to similar dominance in a rising number of its earliest international markets. In case the trend continues, the Netflix’s international popularity might quickly be at par with the results it has already attained domestically.
Increasing global strength
In the U.K., Mahaney reported similarly remarkable results that Netflix started serving in 2012.
Reportedly, the survey showed 56% of subscribers watching Netflix, topping YouTube (49%) and Amazon Video (36%). The populace even expressed even higher levels of satisfaction with Netflix. 80% of subscribers said they were extremely or very satisfied. Only 2% claimed to be slightly or not as satisfied at all.
When in other European countries, RBC conducted surveys months ago; it reflected the growing presence of Netflix. However, it was naturally at earlier stages.
The streaming service was introduced to French and German viewers only in 2014. This year, reportedly, 37% of respondents in France and 35% in Germany watched it. Both had record high levels. In those markets, customer satisfaction was particularly high, too. 93% of French and 90% of German subscribers reported they were extremely or very satisfied with what Netflix offered.
In Brazil, one of its earliest international markets that it entered in the year 2011, RBC’s yearly survey reported that 77% of respondents watched Netflix. A whopping 90% were either extremely or very satisfied with the service while 66% said they were not at all likely to cancel.
It is not all sunshine and rainbows
Netflix is progressing in several other global markets; however, some areas are more challenging than others.
Netflix is targeting India with great interest. Reed Hastings, the CEO said in a statement earlier this year that the next 100 million of subscribers for them is coming from India.
Apparently, since Netflix entered India in 2016, it has doubled its catalog and has launched several high-profile originals in 2018. Lust Stories, Sacred Games, and Ghoul, the 3 programs released lately brought critical acclaim and acquired positive ratings of 100%, 90%, and 82% respectively on Rotten Tomatoes.
Though India could become a source of millions of new Netflix subs in the next few years, the company still has plenty of work to do.
Netflix has also found other Asian markets challenging. The regulators in China set standards that left the company unable to set up a solo presence. It ended up partnering with iQiyi, a local service to get some of its content into the market. iQiyi is among one of China’s foremost streaming players.
Even in Japan, Netflix has to make effort to gain meaningful attention. However, finally, it appears to be gaining some footing. In a survey made earlier this year, it was pointed out that Netflix had a 7% market share. The local streamer TV was behind with 20%, Hulu Japan with 13%, and Amazon with 11%.
Though Netflix has to make great efforts in high-status markets like India and China, their success in many other global markets, mainly its earliest ones, reveals that the guide that made them highly successful in the U.S. can be replicated worldwide.
It is suggested that provided that pattern continues to hold, Netflix’s growth would spike in 2019 and 2020, years 4 and 5 after its much-hyped move into 130 countries in early 2016.