Netflix has announced that it is to put its global domination plans on hold after its launch in the UK and Ireland in 2012.
The plan to land on our fair shores will cost Netflix dear, meaning that it will make a loss rather than a profit for a time – the company doesn't expect to reach profitability in the UK for at least two years.
This news, as well as word of 800,000 subscribers jumping ship, has meant that shares in Netflix dropped 27 per cent. Ouch.
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In a letter to shareholders, Netflix explained that its UK launch will feature an "aggressively priced, compelling service".
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The letter, written by CEO Reed Hastings and financial officer David Wells, said, "UK members will subscribe to Netflix and to other entertainment offerings. We have to attract and retain subscribers efficiently enough to be able to generate a profit.
"By pausing on further international expansion and halting buybacks, our current cash on hand is adequate to support the growth of the business."