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Netflix makes it foray into UK’s world of online streaming media with a power packed launch campaign.

Jan 13, 2012: Netflix, the on-demand and popular service provider of streaming media over the internet has expanded further with a launch in UK earlier this week.

However, sensing the stiff competition ahead in the land of Britishers with prominent players already dominating this field, its road to success won’t be that easier.

About Netflix

It is a renowned company in the US that enables the viewers to enjoy their favourite entertainment programs including films, TV soaps and reality shows.

Ever since finding realms way back in 1997, the company has only diversified in services and clientèle all across the United States.

It created waves with its digital distribution service in 1999, which was based on subscription. Until 2009, it enjoyed a celebrated support of an incredible 10 million subscribers, thanks to its enriched gamut of 100,000 tiles on DVD.

In the year 2011, the company was reported to have crossed 23.6 million subscribers mark and with its recent entry into the UK market, it is all set to achieve even better  milestones.

As per the latest statistics, Netflix enjoys a healthy clientèle with a staggering 20 million subscribers online, spread across 47 nations. Impressive, isn’t it?

[Read: Access Hulu, Netflix & Sling in Europe, Asia and Australia]

The competition

An eminent provider of online streaming media in America, Netflix aims to make it big in the United Kingdom as well.

However, owing to the deep routed ground the existing service providers have already attained in this country, it is not at all a cakewalk for the firm to leave behind a palpable impression among the customers.

Let us have a brief take on its rivals.

Sky: Rupert Murdoch’s Sky, with Sky Movies and Sky Atlantic, is almost synonymous to entertainment in the UK with a massive 11 million subscribers till date.

It offers its services in distinct packages ranging somewhere around $25 to $30 on monthly basis and has been the most preferred service provider in the country since years.

LoveFilm: The next one to break the ice is LoveFilm from Amazon with a whopping 2 million subscribers. Started with the motive to help customers with postal DVD-rental service, LoveFilm has now also made its foray into streaming services.

Recently, it declared to have possessed the best client acquisition record since 2009 that throws even a bigger challenge for Netflix.

BBC iPlayer: Last, but not the least, BBC iPlayer is yet another solid competitor to  Netflix that is simply matchless in allowing the access to high quality streaming videos, free of cost.

Internal Challenges

Alongside such a tough fight from the rival service providers, Netflix faces a wide list of challenges well within itself.

Until the second quarter of the last year, the company was still the best in the business all across the US but it started loosing its sheen with a drastic slump in its viewer ship in the third quarter, where it lost 800,000 customers.

If reports are to be believed,  in 2011, the company was compelled to part ways with 61% of its overall market value which poses an alarm bell for its survival in the future.

Reed Hastings, the co-founder of Netflix however maintains that the loss was met due to a change in the company’s strategy regarding DVD rental and that the streaming services are left unaffected with its clutch, to the contrary, they are a smash hit in the US.

[Read: Watch Netflix in China, Japan, Europe & UAE]

Strategy to establish ground in UK and Ireland

Netflix is all geared up to face its external as well as internal challenges courageously. It has launched the advertising campaign with elan and to start with, is offering free 1-month trial service, with the introductory price set at £5.99 (€6.99 in Ireland). Users will be able to sign up with their Facebook account.

Moreover, they will get to enjoy all the famous television shows along with the most craved Hollywood films right on their computers, games consoles as well as on mobile devices such as smartphones and tablets.

While talking to BBC, Mr. Hastings was crystal clear about his approach when asked about setting some specialized targets for the newly launched service. As per his word, “We think about it as trying to get to millions of members over the next few years. We very much think of it as a long-term investment”.

Bottom Line

Considering the fact that around 95% of the total British households are digitally enabled, Netflix holds an excellent chance to turn the tables in its favor.

As per the vibes created on social networking sites including Twitter, it seems that the fresh venture by the company has managed to impress the people to a great extent, thanks its cross platform compatibility, finely tuned with sophisticated technology.

However, as far as the quality of shows is concerned, the company needs to pull up its socks and get in action at the earnest.

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Wish you a Happy and Private Internet Life !!

Allen R.

Allen is an internet secuirty and privacy geek. He is an Editor at Bestvpnservice.com and loves to explore new VPN Services and technologies. He is also in love with blogging, his life (not wife) and travelling. He is a die hard soccer fan and is crazy for Manchester United.