According to the sources, Reed Hastings, CEO of Netflix said in a letter to shareholders in March, 2014 that he has planned later this year to embark on a substantial European expansion. I found that Jennifer mentioned that , Netflix has expanded into European markets in six countries. I agree with Jennifer that Amazon is the biggest rivalry to Netflix, which also offers instant movies but has entered European markets much earlier than any others. As Netflix originates from America, it does not have as high brand prestige as Amazon. Therefore, compared with Amazon, Netflix is a little less competitive in Europe.

In Jennifer’s blog, she thought the American style of shows has somehow flushed the domestic film production industry and causes the homegrown movies hard to make profit. I think it is partially right because there are 14 percent revenues of Netflix coming from foreign markets. However, “the video-on-demand giant faces a host of challenges if it is to continue to grow abroad.” In my mind, Netflix provides people with similar types of films. Therefore, when people are tired of local tastes of movies, they may switch their wants, changing to other types of movies like Romantic Film. As a result, Netflix cannot earn much profit.

Besides, I believe that Netflix will find that it is going to be more difficult to expand in European markets not only because the new regulation states in Jennifer’s blog, but also people prefer watching movies via online piracy. People can save a lot of money if they choose not to register in the Netflix website because they do not need to pay for movies any more. If that happens, Netflix will lose much customer volume.

Reference:

http://www.marketplace.org/topics/business/netflix-goes-global-will-it-pay

http://www.cnbc.com/id/101487231

http://www.hollywoodreporter.com/news/netflix-plan-conquer-world-449083