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September 08, 2011

Netflix Launching Service in Latin America and the Caribbean

By Oliver VanDervoort, Contributing Writer

While Netflix has come under fire for some of the company’s customer service decisions in recent months, it can still do some things right. The first move the company made that had plenty of customers hot was when Netflix raised its rental rates. 



The hike has so far turned out to be one that its customers have been able to grin and bear. The fact that Netflix’s main competitor in Redbox is also raising its prices doesn’t hurt.

Another strike against Netflix that has just been found out in the last few days is that the company is set to start cracking down on simultaneous streaming. This means that if you are upstairs watching a movie and your significant other is downstairs watching a different Netflix movie you will get a small rate boost for that time period. Despite these recent moves that are upsetting American and Canadian customers, an expansion to other countries is only going to make the service more popular worldwide. 

On Monday, Netflix launched its service in Brazil in what is seen as the first move towards a larger presence in Latin America. Netflix says that in the very near future the company wants to have a presence in 43 Latin American and Caribbean countries. This week Netflix is expected to continue the march in Latin America with launches in Argentina, Paraguay and Uruguay. Within a week they will also have their service in Bolivia, Chile, Colombia, Ecuador, Peru, Venezuela, Mexico, Central America and the Caribbean. 

When launching in Latin America, Netflix will face some real problems that simply aren’t present in the United States and Canada. Of course the first problem is that the library has not really been geared towards a Latin audience. The second issue is that even for those who want the service, there may be problems have the internet speeds and equipment needed for the service. 

According to Ibope Nielsen, only 20 percent of Brazil has an internet speed higher than 500 kilobytes per second. In order to watch Netflix viewers need to have speeds of 800 kilobytes per second or better.

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Edited by Jennifer Russell
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