After fits and starts, Netflix has reportedly exceeded 5 million subscribers in France — five years after launching service largely to indifferent consumers, according to publication Les Echos.
The publication cited comments from Netflix co-founder/CEO Reed Hastings, who was in Paris recently to announce the opening of a company office staffed by 20 employees.
The benchmark is impressive considering Netflix reported 3.5 million subs last September. Since then, the SVOD pioneer has pledge to double local content production. It has also attempted to bridge a divide with the French movie industry, notably the Cannes Film Festival regarding theatrical windows.
The publication said French media pay-TV/SVOD platform Canal+ still exceeds Netflix in average monthly revenue per subscriber (€40) compared to €12 for Netflix.
French households now spend 1% – 2% of their TV viewing with Netflix, compared to 10% in the United States. About 1.7 million people in France watch Netflix and other video-on-demand services daily (including 60-70% Netflix) in prime time, according to an NPA Conseil study.
Les Echos said Canal+plans to launch a less expensive SVOD service with localized content to up competition with Netflix. In addition the service has the ability to license American TV shows such as “Billions” and “The Affair,” as Showtime does not distribute internationally.
“Even though it has reached the 5 million subscriber mark in France, Netflix probably still has a real growth reserve,” wrote Les Echos.