Netflix is going full force with its push into Europe, entering six new markets. However, the video streaming service provider is not receiving a warm welcome from France.
Netflix, which has over 50 million subscribers spread across 40 countries, has been welcomed in several countries in Europe. The company looks to spend $400 million this year for further international expansion, which has Netflix setting up a larger footprint in Europe.
Netflix has already established itself in Britain, Denmark, Finland, Ireland, the Netherlands, Norway and Sweden, and with the recent launches, is now also present in Austria, Belgium, France, Germany, Luxembourg and Switzerland.
France, however, is proving to be a challenging territory for Netflix to conquer. Netflix is aiming to reach one-third of homes in France over the next five to 10 years, but there are several hurdles that the company has to overcome.
While Netflix pioneered the video-streaming industry in the United States, the service is now already well-established in Europe.
Netflix gained additional success on top of pioneering video-on-demand in the United States by producing new programs such as the House of Cards series.
"What is impressive with Netflix is its technological and marketing abilities," said Frederic Goldsmith, who is from a French-based movie producer group. "[B]ut its service isn't new."
Canal+, the main pay-TV operator in France, seeks to counter Netflix's advances into France through a new partnership that it struck with HBO. Canal+ also allows users to pre-download content such as movies and TV programs for watching at a later time without the need for an Internet connection.
Canal+ owns CanalPlay, which already has half a million subscribers. Canal+ also owns the rights in France for House of Cards, and has revealed that it will be creating TV series that are both American and French-produced.
According to CanalPlay director Patrick Holzman, the company is relying on its "French touch," along with its proximity with its subscribers.
"Our strategy is the same, with or without Netflix," Holzman said.
FilmoTV head Bruno Delecour said that the buzz surrounding Netflix's entry into France is good for the market, as it would attract more families to try the video-on-demand service. However, Delecour said that the company is ready for Netflix.
"We've been preparing for competitors for years. We made the choice to occupy one segment of the market and invested heavily accordingly," he said.
FilmoTV is one of the first video-on-demand providers in France.
In addition to competition from well-established video-on-demand companies, Netflix is also facing new government regulations and demands from the French cinema industry for Netflix to heavily invest in French productions.
