The subsciption video-on-demand (SVOD) service may have recently encountered some problems but Netflix's recent European extension will propel it to 17 million international paying subscribers by the end of 2014 says analyst Digital TV Research.
Netflix has been traditionally very reticent about releasing subscriber numbers but the research firm predicts that the launches in six European countries during September will help add nearly three million subs to the international total of 14.4 million in September 2014.
"We have made several adjustments to our previous estimates [based on the June results]: subscriber numbers are now a lot higher in Latin America (and a little higher in Canada). Subscriber numbers are now a lot lower in the UK (and a little lower in the Nordic countries)," said Digital TV Research principal analyst Simon Murray commenting on how the company made its calculations.
"We underestimated Latin America last time due to the historic payment problems that Netflix encountered (low credit card ownership; little electronic banking; low broadband penetration etc). Netflix has introduced simpler payment methods (such as prepaid cards) that has boosted take-up. However, economic slowdown is expected in the region, especially in Argentina and Venezuela, which could hit Netflix take-up."
The analyst noted that its figures did not include subscribers to the US service who are based outside that country.