It is earnings season and yesterday Netflix returned to profitability after a year of turmoil. In the earnings report Netflix announced the plan to enter an unnamed foreign market in Q4 2012. For months rumors have pointed to Scandinavia and most recent sources have almost confirmed the move.
Netflix to enter Scandinavia in Q4
Yesterday, Netflix reported revenue of $889 million and profit of $6 million for the just-concluded quarter. In the previous quarter Netflix reported a $5 million loss on revenue of $870 million. Netflix now has 27.56 million streaming subscribers worldwide.
Netflix is heading to Scandinavia, sources say
Netflix also announced a plan to launch in an “additional attractive European market” in Q4. Netflix remains light on specifics but our sources have details to share. In early 2012, Netflix launched in the UK, and for months we have heard rumors that Netflix is planning to enter the Scandinavian market (Denmark, Norway and Sweden). Just last month a content provider was cited as saying that “their (Netflix’s) plan is to go live in 2012” (translated) when talking to one of the leading media publications in Denmark, Politiken.
Competing TV providers are well-aware that Netflix is preparing to enter the Nordic market which is largely dominated by linear TV broadcasting. Netflix is said to have been in negotiations with content providers for some time. YouSee, the largest TV provider in Denmark by a margin, was also cited as saying that,
- “We are aware that Netflix is coming, and we will counter their attack with the same business model,” to Politiken.
Sources have suggested a launch in “fall of 2012”. No pricing or content details have been mentioned.
Netflix has promised to share more details in Q3 2012.