Netflix‘s (NASDAQ:NFLX) stock price shot up yesterday when it announced its plans to enter Latin America. Netflix has mentioned that its streaming services will be available to 43 countries spread across Latin America and the Caribbean. [1] This move had been anticipated as Netflix had earlier announced its interests in entering the region, contrary to our initial expectations of the company expanding into the UK before LatAm. While the potential market opportunity is large, there could limitations from poor broadband quality and low per capita income in the region that might could reduce the near-term adoption. However assuming these kinks get worked out, the company could well see a huge boost in subscriber additions in the coming years. Another question is who will challenge Netflix in these markets? Will it be Google (NASDAQ:GOOG), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN) or someone else?
We plan to update our estimates soon once we receive more details on Netflix’s expectations and the look at the potential market opportunity for Latin America.
Our current price estimate for Netflix stands at $153, which is significantly below the market price
See our complete analysis for Netflix’s stock.
Notes:- Netflix is Coming to Latin America, The Netflix Blog, Jul 5 2011 [↩]
