Netflix is big in the United states, but it’s international business is on the verge of being huge.
The streaming service’s subscriber base and its revenue are expected to surpass its domestic business by 2020, according to Lond-based analytics firm IHS Markit. The firm predicts Netflix is going to have 75 million international subscribers by that year, pulling in about $7 billion in revenue, Market Watch reports.
Netflix has about 80 million subscribers today, 34 million of which are made up of international customers.
“Netflix has launched a platform upon which it can build and differentiate the service to fit specifics of every region in the future,” IHS analyst Irina Korilova said. “Netflix is starting this localization process in Poland and Turkey this year. Subscribers in these countries can expect an addition of local languages on the user interface, subtitles and dubbing of content. This will help drive new subscriber numbers drastically.”
Netflix’s second quarter earnings were disappointing from the perspective of an investor (subs went up, but the rate of growth was its slowest in history).
Some analysts pointed to a price increase that hit remaining subscribers earlier this summer.
CNBC’s Jim Cramer said people were dropping the service, however, for a lack of content.
“Something happened here where people decided that content wasn’t worth paying for,” he said on his show Squawk on the Street. “I would never in a million years say I’m not paying the additional couple of dollars.”
BGR reported this summer that Netflix’s library “has dwindled dramatically over the past few years.”