Netflix is coming to the Caribbean later this year-who’ll be smiling and who’ll be a tad upset?!

NetFlix coming to the Caribbean

Netflix announced last week that they they are launching their service in 43 countries across Latin America and the Caribbean later this year. This means, that anyone with Internet access will be able to  watch TV Shows & Movies Online or Stream shows to their TV via Wii, Xbox, PS3 & many other devices all for a low monthly. Typically it’s US$7.99 a month, though they are yet to reveal the pricing for this region. So us, Subscribers will be able to Watch, pause and watch again when we want, No commitments, cancel anytime.

Good news…hell yeah! Their press release said…”Customers in Mexico, Central America, South America, and the Caribbean will be able to access content on a variety of consumer electronics devices capable of streaming Netflix, as well as PCs and mobile devices, Netflix said. Netflix streaming is currently available via major consoles like the PS3, Wii, and Xbox 360, as well as a variety of Internet-enabled TVs and DVD players and streaming players like Apple TV.”

Why does Neftflix want to do this?
The numbers speak for themselves. According to Citi’s Latin American telco analyst James Rivett, “there are about 600 million residents between Mexico, Latin America and the Caribbean, which makes the addressable market about twice the size of the U.S….. estimates that there are approximately 45 million broadband subscribers in Latin America and the Caribbean, with 36 million of those in Brazil, Mexico, Chile, and Argentina.” And yes in Jamaica, we can get as high as a 100MB connection for residential so bandwidth is using Netflix will be easy…it’s just that now to get it, one has to use a bypass, a VPN that gives you a US IP address in order to get the service running.

With the NetFlix App: Watch NetFlix on your Smartphone - Iphone, Ipad, iPod Touch, Samusung and other Android phones

What does that really mean for the Caribbean consumer?

Barring a rate increase, for US$7.99 a month, this means that anyone with wifi, fixed broadband, mobile broadband internet access and a device such as a PC, Laptop, S3, Wii, and Xbox 360, as well as a variety of Internet-enabled TVs and DVD players and streaming players like Apple TV will be able to use this service. In the Caribbean there are 10,426,120 Internet users as of March 31 this year and that’s only at a 25% internet penetration. In other words, lots of room to grow for the NetFlix service.

Currently, the majority of Caribbean people watch their movies, TV shows via Cable Service providers. Triple play providers like FLOW also offer Cable TV packages as well as telecom provider LIME with its successful launch of Mobile TV which now offers a sampling of US Cable TV channels on your mobile phone with PC and Home TV coming soon they said. Hmmmm!!! Take for example, that the average package for Cable TV in Jamaica  is $2,585/ month for just over channels. On Flow you can get a basic Watch package for $854 for 64 channels. LIME’s Mobile TV trials right now offer 11 channels plus 800 free on-net minutes for $800 a month.

Compare all of that to US$7.99 for UNLIMITED TV Shows and movies. The Caribbean Consumer will be very, very happy!

LIME Mobile TV

What does that really mean for the cable industry?

The Caribbean Cable Industry can expect to further decline further especially as more Caribbean people access the Internet on their smartphones, Laptops, iPads and PCs and the rate of broadband rollout and uptake also increases. The Netflix service will make it easier for those who already have broadband internet access to switch and enjoy a more customer friendly approach to entertainment content.

What does that really mean for the DVD rental industry?
In a phrase, they can start packing up right now. While the Cable TV industry will have some time, DVD rental industry will in effect make no sense to the Caribbean consumer. Especially in Jamaica, that industry is Dead. Why pay between US$3-US$5 to rent a single DVD for  a single night, when you can spend US$7.99 for an all you can eat buffet of online video content. Need I say more?!

Flow has Digital Cable TV + Broadband Internet

What does that really mean for the Internet Access provider industry?

As would be expected, increased demand for broadband internet access. FLOWJamaica  is ahead in this as they have begun rollout of 100MB to residential customers in Jamaica and other markets. LIME is also in the game as well as the fresh faced Jamaican player DEKAL Wireless who’s been working to blanket primarily underserved areas in Jamaica with wifi.

What are your own thoughts on this development?