Can Netflix Become Must-See TV in Japan?Issue 08-31-15 |
Netflix's goal is to become the first online worldwide television network. Its success in Australia, Canada, United Kingdom, and Brazil has helped build investor confidence, with the company's market capitalization up over $22 billion this year. By the end of 2016, the company hopes to be operating in more than 150 countries. It is set to roll out service in Japan in September, where it will face a new challenge: consumers unaccostomed to paying for content.
In Japan, there are seven free broadcast networks, and most consumers use a digital video recorder to capture their favorite shows for later viewing. Hulu entered Japan in 2011 offering service for about $15 a month but subsequently sold its business to a local firm. Four years later, Netflix is coming in at a lower price (less than $9 a month) and with exclusive local programming as well. It hopes this will help attract viewers initially and then they will continue on once they have access to Netflix's vast video library.