Netflix Expanding to The Bahamas

Wed, Jul 13th 2011, 11:57 AM

Move will bring competition for Cable Bahamas' pay TV service
 
Netflix's 23 million North American subscriber base will this year, expand to include thousands of users in The Bahamas -- which could spell bad news for Cable Bahamas' profits and its newly-introduced REVTV product.  In an interview with Guardian Business yesterday, Steve Swasey, vice-president of corporate communications at Netflix, asserted the timing is right to launch the internet streaming service locally.

"Yes it is [launching in The Bahamas] later this year with Spanish, Portuguese and English content," he confirmed.  "We were based only in the U.S. until last year when we launched in Canada [and] we've seen dramatic growth, and it's been very rewarding to see that.
"We decided to push through to another market...  The time is just right for Netflix."

The launch is a part of the internet movie subscription service company's decision to expand into 43 countries throughout Latin America and the Caribbean.  The company - where U.S. Ambassador Nicole Avant's husband Ted Sarandos is chief content officer -  plans to offer unlimited TV shows and movies that will be streamed instantly to TVs and computers here in The Bahamas.

And therein may lie the issue for Cable Bahamas, given this latest announcement follows its newly-launched REVTV packages, which include video on demand (VOD).  The VOD product currently offers subscribers of the HBO network access to 120 hours of HBO programing, with customers allowed to pause and rewind at their convenience.

Netflix's introduction may pose a threat to Cable Bahamas' edge in the market, as the two services may go head to head with each over subscriber dollars.  While HBO VOD is free to those with the current pay TV channels, Netflix's monthly fee - now $8 in the U.S. - may eliminate the need for many people to sign up for premium Cable channels.

Guardian Business notes that HBO programing in particular will not be offered through Netflix because it doesn't currently have rights to stream HBO shows.  HBO saw its subscriber base decline by some one million in 2010.  The entry of Netflix could lead Cable Bahamas to work harder to maintain its market dominance, with lower prices always an option in the midst of fierce competition.

While Netflix is not giving out numbers as to its target here in The Bahamas, or the Caribbean, Swasey said the product should be easily accessible enough for Bahamians -- even those with Cable Bahamas as an internet provider.  "Netflix has a streaming functionality through [a] content development network," Swasey explained.  "(The content) streams to the internet service provider to get to your house.

"So we buy movies and TV shows from studios and independent film makers and encode them for streaming and then you get them on your TV or computer."  Guardian Business' queries to Cable Bahamas on the pending competition went unanswered up until press time last night.

Already, some Cable Bahamas customers are looking forward to accessing Netflix content, arguing it will help the country in combating the problem of pirated movies.  This way, said one customer, Bahamians will be able to access a wide array of movies that did not make it the theaters locally and watch them as they would a DVD.
 
 

Click here to read more at The Nassau Guardian

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