Netflix, Inc. (NASDAQ:NFLX) To Be Available In Japan After The Company Partners w/SoftBank
Netflix, Inc. (NASDAQ:NFLX) is expanding into Japan as part of its efforts to reach 200 nations by the end of 2016. The streaming video service will launch in Japan early next month. Netflix is collaborating with Japan’s SoftBank Group, a local giant telecom company, to support its expansion in the country.
In its latest global rollout, Netflix, Inc. (NASDAQ:NFLX) is entering Japan, where the streaming service is slated to launch on September 2. For the smooth rollout of Netflix in Japan, the company has partnered with ,SoftBank Group Corp(OTCMKTS:SFTBF)(OTCMKTS:SFTBY)(TYO:9984).
Among other things, SoftBank will allow its subscribers to sign up for Netflix and pay for the service through their existing SoftBank accounts. As such, SoftBank customers who want to sign up for Netflix will not be required to supply additional payment information.
SoftBank will also enable its subscribers to sign up for Netflix on its website, at its retail outlets or through its call centers. Moreover, SoftBank will also start offering smartphones preloaded with the Netflix app at its stores.
Given the partnership with SoftBank, Netflix is set to benefit from an existing pool of subscribers in its expansion in Japan.
50 countries covered
Currently, Netflix, Inc. (NASDAQ:NFLX) has launched in 50 counties but the company’s target is to launch in 200 countries by the end of next year. With about 65 million global subscribers, Netflix’s ongoing expansion abroad could see the company reach 100 million subscribers by 2020.
Challenges and opportunities abroad
Netflix, Inc. (NASDAQ:NFLX)’s recent major global expansion has been taking place in Europe. The service also launched in Australia this year.
As Netflix expands abroad, the company is encountering new opportunities as well as challenges. The global expansion is enabling Netflix to grow its user base, thus widening revenue potential. However, the company is also meeting competition from domestic rivals, and a move to China is particularly expected to be challenging. China’s e-commerce giant, Alibaba Group Holding Ltd (NYSE:BABA), has a rival video streaming service that is likely to give Netflix a run for its money in the market.
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