Investors considering Netflix's
Piper Jaffray's Michael Olson raised his price target on the leading movie rental service -- from $240 to $280 -- encouraged by Netflix's opportunity to grow its popular streaming service abroad.
It was easy to be skeptical when Netflix rolled into Canada back in September.
- Would Netflix work as a streaming service with a limited digital catalog?
- Would subscribers come despite the lack of DVDs and Blu-ray discs?
- Canada has tiered broadband pricing. Would a digital smorgasbord pan out in a metered country?
The answer has been "yes" on all counts. Netflix expects to surpass a million subscribers in Canada this summer and is eyeing additional expansion markets.
Olson surveyed residents in the four countries likely to be on Netflix's shortlist: Mexico, Brazil, the United Kingdom, and Germany. A third of the respondents were familiar with Netflix with more than half of them already owning devices capable of streaming through home theaters. To be fair, Olson's survey consisted merely of 50 participants from each of the four countries. In other words, this isn't all that scientific. However, Canada's success after an initial hiccup is laying out the roadmap for expansion.
It won't be a cakewalk. Amazon.com
They better hurry, though. Netflix has a passport, and it's apparently not going to be afraid to stamp it.
Will Netflix be as successful abroad as it is closer to home? Share your thoughts in the comment box below.