Is Netflix Headed South of the Border?

south of the border

Ever since Netflix announced that it was expanding to Canada, there’s been plenty of speculation about where the subscription streaming service may pop up next. But on CBS’s first-quarter earnings call Tuesday, CEO Les Moonves might have spoiled the surprise: While discussing opportunities for new digital revenue streams, he said CBS was negotiating with Netflix for content rights in Latin America.

“We are in very serious discussions with Netflix about doing a deal in Latin America, doing a deal in Canada, and those deals might happen fairly quickly,” Moonves told investors. The CEO noted that CBS’s current deal with Netflix only includes streaming rights for the U.S., which means that CBS still has an opportunity to license its content for streaming in Canada and other new international markets.

Certain Latin America markets — in particular Mexico and Brazil — have been rumored as possible targets for Netflix’s next effort at international expansion. But Netflix has remained quiet on where that expansion might actually happen.

When asked for comment Netflix VP of Corporate Communications Steve Swasey downplayed the comments by Moonves. In an email, he wrote:

“That’s not a confirmation. Les said we’re negotiating, just as we’re negotiating all the time with all the studios, networks and independents for future expansion worldwide. But negotiations do not mean we have completed deals for any specific content or markets.”

That leaves the door open for other possible new international markets, and we should find out where Netflix plans to launch next soon. Based on its early success in Canada, Netflix has said it expects to expand into one additional market by the end of the year.

Photo courtesy of (CC BY-SA 2.0) Flickr user rvaphotodude.

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