Netflix to Invest Heavily in Marketing for Ambitious Global Expansion Strategy

Netflix is gearing for a marketing push over the next two years in the attempt to gain the leading edge over competitors and expand its global market.

The company has set itself the ambitious goal of having its movie streaming service available in 200 international markets with adequate broadband infrastructure by 2016.

They believe this is achievable based on strong subscriber growth in the last quarter, facilitated largely by a major boost in marketing investment in the run up to Christmas (representing a 59% increase in spend compared to a year ago).

Additionally, expansion into new markets is related to Netflix being under pressure to continue growing subscribers while keeping content costs under control amid escalating competition from HBO and CBS. To this end, they will be focusing on original content as a core part of their service offering since it is cheaper than licensing content.

Netflix Chief Executive, Reed Hastings, commented: "Last year our original content overall was some of our most efficient content. We'll continue to improve our content, our marketing and our service, to eventually achieve 'must have' status in most households."

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