jenniferlin

Netflix (NFLX), the world’s largest video service company, originally from America, is now offering TV shows and movies in six different European countries. (Started from September, 2014) It is now the second-large Internet source in the U.K; however, its biggest rivalry, Amazon, which operates instant videos, maintains its superiority due to an earlier entry to the European market. I totally agree with Lucas Shaw, who wrote about Netflix in his business blog.

According to an income statement reported by CEO Reed Hastings last year, the international revenue went up to 85 percent while they were expecting a maximum of 80 percent. The American style of shows has somehow flushed the domestic film production industry and causes the homegrown movies hard to make profit. However, that situation seems not a big problem for French domestic film producing. A regulation made by French government has clearly informed that every media operating companies has to invest the local film production as well as TV channels to keep homegrown production running. I think this rule not only guarantees a positive growth for domestic film producing but also stimulates the massive investment from international companies. The government establishes a “tariff” on the games and makes sure that the cash doesn’t flow out of the country easily.