Netflix expanding to the UK, may run at a loss in 2012


Perhaps I spoke too soon yesterday when I said the company was still doing alright. According to Ars Technica, the company may actually go the entirety of 2012 in the red. It is not just a matter of the subscriber loss, however, since the company is going to expand to the United Kingdom and Ireland in the first quarter of next year. Since that will (obviously) require an incredible investment, they expect to spend at least a few quarters running at a loss. While plans to branch out into the European continent exist, they are being put on hold until the company returns to making a profit. 

I think both of these things are good news. I assume it will be some kind of wake up call to Netflix (and perhaps some new competitors (please?) looking to get in on the race), and it’s also pretty cool that other countries will finally get to see what all the fuss is about. Given the fact that the company will have to start from scratch due to region locks and what-have-you, I can’t imagine the amount of money involved. Best of luck to them. I’m very curious to see how it works out.

[Via Ars Technica]