Netflix have claimed customer in the UK at 1m and said this is the fastest ramp up in their history. Unfortunately I am not at all convinced of the validity and the cost of acquisition is scary. Lets look at the story here.
1) Netflix has spent a bundle on promotion, they are all over TV and web portals big time. I reckon if they have 1m accounts then its cost them $10 an account to acquire.
2) How many are real? I took one out after all its free for a month and then cancelled as my home bandwidth won't support streaming.
I think that the European market will cause them short term grief. The figures I have given for Internet bandwidth in Europe show that this continent is just not ready yet. The question is how long can they pump money in at the burn rate they have?
1) Netflix has spent a bundle on promotion, they are all over TV and web portals big time. I reckon if they have 1m accounts then its cost them $10 an account to acquire.
2) How many are real? I took one out after all its free for a month and then cancelled as my home bandwidth won't support streaming.
I think that the European market will cause them short term grief. The figures I have given for Internet bandwidth in Europe show that this continent is just not ready yet. The question is how long can they pump money in at the burn rate they have?
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