Netflix in Jolly Ol' London?

Netflix, even with the multitude of ups and downs it has had this past year in the US, recently brought its' streaming service over to the UK and Ireland at the beginning of the month. It isn't entering a new market however as it will be competing with Amazon.com's LoveFilm for British viewers. Lovefilm can be seen as a British alternative to Netflix, offering both DVD's and streaming and announced that just weeks ago it reached 2 million members.

Netflix's success abroad is still unknown and reviews are split. Lovefilm is a pound cheaper than Netflix at 4.99 compared to 5.99 but Netflix wins out in the area of compatibility with smartphones and other devices and its' overall picture quality. This is a high-risk high-reward option for Netflix which suffered greatly in the states when it tried splitting its' DVD and streaming service and tried to introduce video game rentals as well. Streaming is the future of movie rentals and it does make sense for Netflix to enter the international market. If Netflix manages to keep up with a better picture quality and more compatibility than its' competitors than the 1 pound price difference will most likely not affect the company greatly in terms of members. However, if it tries to do the same thing it did in the United States with the 40% price hike of its service than it better prepare for a quick demise in the UK and Ireland.

Unlike in the United States, Lovefilm provides a popular alternative that is still lacking over here. Once Amazon and Apple's rental services hit American shores in a few years then Netflix will really have to look at it's offerings worldwide. Netflix will have to keep up with a current library of movies and television shows while still making the price of the service competitive. This is a big gamble but if Netflix can show that it has not only the best picture quality, most compatibility, but also the shows and movies people want to watch then they will be able to breathe easier in the future.

The complete article can be found at: http://www.dailyfinance.com/2012/01/28/can-netflix-make-it-in-the-uk/