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Netflix, Inc. (NFLX) Japan Launch Stymied by Amazon.com Inc. (AMZN) Surprise

Netflix Inc shares spike on Japan launch

Netflix, Inc. will be entering the Japanese market next week, and soon it will meet its arch rival Amazon in the foreign land, who is going to offer its Prime Video service in Japan. While Netflix will debut in Japan on September 2, Amazon.com, Inc. Prime Video service will debut anytime next month. The launch date has not been made public by the U.S. firm for now.

Netflix Inc shares spike on Japan launch

Amazon vs. Netflix in Japan

“Prime Video will offer thousands of popular Japanese and U.S. movies and TV shows, anime series, music concerts and variety shows, plus Amazon’s own award-winning originals and new Japanese originals,” Amazon said in an announcement issued on Wednesday.

 

Amazon’s Prime service has been in Japan since past 10 years, and therefore, it will have an advantage over Netflix in terms of existing user base to tap into, and also in terms of price. To its advantage, Netflix entered into a deal with SoftBank under which the telecom giant will support the billing process of the US firm, and beginning October it will pre-load the apps on its devices.

The existing Prime customers will get to avail the service for free. These customers pay ¥325 ($2.70) per month or ¥3,900 ($32) annually. Few perks related to Amazon shopping will also be offered to these customers. Netflix’ service will be priced in Japan at around ¥650 ($5.40) per month before tax. The standard plan, with two high-definition streams, is priced at ¥950 ($7.90) while the Premium one priced at ¥1,450 ($12), says a report from TechCrunch.

Apple a potential rival?

The streaming service market is getting tougher and tougher with many players coming in. Apart from Netflix  and Amazon , Hulu is another vital player in the segment. Many more are planning to enter the  market, and Apple could be one of them.

Since 2009, there have been speculations of Apple launching a video-streaming service. These rumours have resurfaced along with the rumours of Apple TV refresh. As revealed by Bloomberg, the talks with CBS, FOX, and NBC have stalled and that will push back the launch date of the service. Apple will be able to launch the new service only in 2016 as per the reports.

Hinting of Apple’s TV streaming service, Apple Music Jimmy Iovine told Wired, “We all know one thing, we all have different television delivery systems, don’t we all wish that the delivery systems were better, as far as curation and service?”

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.

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