Online provider of on-demand Internet streaming media, Netflix, is entering six new markets Monday. They are hoping to gain a big subscriber base in Europe.
French competitors are trying to fend off Netflix, the government wants oversight, and the cinema industry wants Netflix to invest in French production, according to the Associated Press.
In response, German cable competitors are slashing the price of monthly subscriptions and Switzerland’s largest cable operator introduced a new counteroffer, according to the New York Times.
The New York Times reports that the biggest resistance to Netflix’s European jump is France. Telecommunications operators like Orange are refusing to carry the service because they have not settled on financial terms.
Manuel Alduy, head of Canal OTT, argues that the Netflix catalog is “not really adjusted to local taste.”
Netflix has said it aims to generate as much as 80 percent of sales outside the U.S. In the past year, international revenue jumped 85 percent, according to Bloomberg Businessweek.
"You’re going to see and have seen more focus on original programming and high-quality scripted drama," Darren Throop, CEO of Entertainment One said.
The Economist reports that because Netflix will be using its headquarters in Amsterdam, it will avoid the levy that French broadcasters and distributors pay to subsidize local productions, and limitations on the share of foreign-made shows.
Photo: Flickr/Lauren Lewis