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Netflix Plans to Expand to Italy, Spain, and Portugal

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Launch in Italy, Spain, and Portugal

Netflix (NFLX) expects to launch in three more European markets in October. The company plans to launch in Spain (EWP), Portugal, and Italy (EWI) on October 20, 21, and 22, respectively. Netflix will price its service in these countries at around 8 euros, or $9, per month.

Netflix has also announced that Vodafone (VOD) customers in Spain will be able to watch Netflix on Vodafone TV. When Netflix launches in Spain, Vodafone customers there will be able to access Netflix through the Netflix app (application) on Vodafone TV.

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Netflix will offer original TV series such as Daredevil, Sense8, Bloodline, Grace and Frankie, Unbreakable Kimmy Schmidt, and Marco Polo in these countries. The company will also offer original feature films such as Beasts of No Nation; Crouching Tiger, Hidden Dragon: The Green Legend; Jadotville; and The Ridiculous Six. Netflix has entered into a multi-year licensing deal with The Walt Disney Company (DIS) to provide exclusive content.

Mobile Internet penetration

According to the Internet Society Global Internet Report 2015, countries in Western Europe, including Italy, Spain, and Portugal, have the highest rate of mobile Internet penetration. As the above graph shows, Western Europe has a mobile Internet penetration of 64%, second only to North America’s mobile Internet penetration of 69%.

The high mobile Internet penetration in Western Europe bodes well for Netflix, as many of its Western European subscribers will be able to access Netflix on various electronic devices. So it makes sense for Netflix to launch its service in Italy, Spain, and Portugal as soon as possible.

You can get a diversified exposure to Netflix by investing in the iShares S&P 500 ETF (IVV), which holds 0.26% of the stock. IVV also holds 3.7% of Apple (AAPL) and 2.2% of Microsoft (MSFT).

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