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20/06/2013 by

Online Video Giant Netflix Is Going Dutch This Year

Netflix the online video giant is going Dutch this year. It will expand into The Netherlands, its 41st country.

Online Video Giant Netflix Is Going Dutch This Year

The news is shaking up Dutch broadcasters and publishing houses that will experience severe competition. Recently HBO also entered the Dutch market.

Fox and Amazon will be entering this market as well. And Netflix? They might already kick off mid September 2013.

Let’s explore what’s beyond mass mediocrity and linear thinking.

Netflix Going for World Domination?

Dutch subscribers will be able to stream Hollywood fare, local TV series and Netflix originals like House of Cards on TVs, game consoles, computers and mobile devices.

Online Video Giant Netflix Is Going Dutch This Year

Netflix Inc. didn’t offer details on pricing, saying only there would be a low monthly price. The Netherlands is a small market, with 17 million inhabitants, but Netflix is growing inch by inch.

As of the end of March 2013, Netflix had 29.2 million streaming subscribers in the U.S. and 7.1 million internationally.

The company was established in 1997 by Marc Randolph and Reed Hastings and is headquartered in Los Gatos, California. Netflix initiated an IPO on May 29, 2002.

It launched its streaming video service in 2007, expanded to Canada in 2010, Latin America in 2011 and the U.K., Ireland, Finland, Denmark, Sweden and Norway last year.

More about Netflix can be found here on Wikipedia.

What About US Video Platform Hulu?

Now what about Hulu, another powerhouse video giant? Are the “monkey” owners selling Hulu for peanuts?

Online Video Giant Netflix Is Going Dutch This Year

Recently I called the Hulu owners insane for selling their powerful platform. Who-lu??! Yes Hulu, the platform offering audiences from the US the possibility to watch TV-series online.

Their revenues from advertising and subscriptions increased with 65% in 2012, to a staggering amount of $695 million already.

So their business model is not only depending on advertising, it is also powered by Hulu Plus: Spotify-alike monthly subscriptions.

If Hulu can push its CAGR towards 50% in 2013, they will be hitting $1 billion revenues by the end of 2013. This could be a simple metric, not myth.

So why should this CAGR boosting video platform be sold for just $1 billion?

My Opinion

For a decade the European broadcasters have assumed that US giants like HBO, Amazon and Netflix would not cross the sea.

But even small markets like The Netherlands are being visited by these powerhouses. Our network has whispered that Netflix NL will be kicking off around mid September 2013.

And like in many other markets, Dutch broadcasters are like record labels; They know the trend is coming, but they are too worried about the ROI. They should have jumped 5 years ago!

This Netflix move will certainly be shaking up the Dutch marketplace, and might be pushing some linear minds into a few extra strategic sessions.

Boiling room or boiling frog: Steamy windows at RTL, Sanoma and Talpa?

A bit too late to create new business models? Maybe their venture divisions can buy them a way into new business models?

What About You?
How do you feel about the future potential of Netflix and Hulu? Who should be scared? Let us know in the comments below.

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About the Author
Igor Beuker was CMO at 3 listed companies, chairman at the IAB, jury member at Webby, AMMA and Esprix awards, founder of 3 digital agencies (sold to WPP) and global chief social officer at Mindshare. Now he is freejack consultant and still a sought after keynote speaker.

Source: Huff Post.


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