Netflix has been in DVD rental market distributing movies to consumers located in United States. It continued to grow its streaming service both domestically and internationally.
Netflix’s international expansions began with Canada in 2010 and have since launched their service in Latin America and Caribbean by September 2011.UK and Ireland was the third region that Netflix launched in by January 2012.And Scandinavia was the last region to see the introduction of the service including Sweden, Denmark, Norway and Finland on October 2012.

Netflix’s idea behind global expansion is that it recognized that growth will be slower in the US than it has been in the past and hence they are looking to international markets for aggressive growth. Since the content license obligation of the company now totals over $4B according to the company’s report, new subscribers do not increase content cost, the major debt category for the company.

Netflix remains profitable with a net income of $32 million and revenue of $1.1 billion, despite investing in international markets. Also, the subscriber addition in the international segment surpassed its US subscriber additions.

The company’s global expansion strategy is characterized by the following:

They focus on markets with broadband services.
The company has been very clear that their domain is streaming only and will not launch international DVD by mail service. Netflix does not partner within market companies or form joint ventures. They contract with individual providers to provide technical and logistical support they need.
Their pricing strategy is to make Netflix easily affordable by the average broadband subscriber.
The company leads with the US content that has been dubbed or subtitled into the local languages and does not try to acquire a large library of local content.

Now, with growth of its domestic