Will they or won’t they? That’s the major question facing Netflix, as conflicting reports emerge about the SVOD giant’s plans to expand into Spain. Let’s take a closer look at the debate and assess the likelihood of the company expanding into the Iberian market.
Netflix officially arrived in mainland Europe in September, with its largest-ever rollout placing it in six new countries (France, Germany, Switzerland, Austria, Belgium and Luxembourg). The streaming service had already experienced successful rollouts nearby, in the United Kingdom and Scandinavia, but countries like Germany and France were an entirely different beast.
In France, Netflix faced immediate competition from Canal Plus, the major pay-TV provider there and a company not content to cede the streaming market. At the time of arrival, Canal Plus held the rights to many American shows — including Netflix’s red-letter program House of Cards — and have since added more to their roster, including Amazon original shows Betas and Alpha House. It also bolstered its SVOD feature, Canal Play, adding a feature that Netflix doesn’t have: the ability to download content to watch offline.
Still, Netflix has had a successful few months, with CEO Reed Hastings saying the company is ahead of schedule in terms of subscriptions, and chief content officer Ted Sarandos said the company wants to be “everywhere” in five years. Sarandos also added the Canal Plus carrying Netflix originals like House of Cards was actually a bonus for the company, since it would refer more customers organically.
Does Sarandos’s “everywhere” comment include France’s neighbors to the south, then? Not so fast, says Netflix. The company recently refuted comments made by Toshiba executives in Spain who said the streaming service would arrive by 2015, stating in an interview with Gizmodo Spain that there was nothing to announce on the matter.
It’s possible Netflix wants to postpone the announcement of expansion until the company can make it on its own terms. After all, Spain seems primed for a new company in the SVOD market. According to a report in RapidTVNews the economy, which is picking back up after a prolonged struggle during the financial crisis, and tighter restrictions on piracy seem to open the door for a company like Netflix, which relies on subscriptions for over-the-top, excellent service. The streaming company has also had success in other Spanish-language nations, particularly Mexico and elsewhere in Latin America.
Even if Netflix does eventually expand into Spain, it will again face Canal Plus as a competitor. In October, the Spanish branch of Canal Plus launched its own proprietary SVOD service, Yomvi Play, which operates similarly to Netflix and Canal Play: monthly subscription rates, cross-platform viewability and thousands of titles to choose from. The arsenal is impressive and includes the likes of HBO’s The Sopranos and the famous sitcom Friends.
So, Netflix has announced its intention to be everywhere, but it has declined to say whether that will start with — or even include — Spain. Is it the environment? The timing? The competition? For now it is unclear, but there is little doubt the rumors will continue to swirl, and for the time being, Reed Hastings’ comments will continue to be translated into Spanish, Andalusian, Catalan and Basque.