Netflix ‘Really Optimistic’ on Ultra HD as Growth ‘Driver,’ CEO Says

Netflix is “really optimistic” about Ultra HD as a subscription and revenue “driver,” CEO Reed Hastings said on a quarterly earnings interview Wednesday. “So as more and more Ultra HD TVs get sold at major electronics outlets over the next five years, more and more people will want Ultra HD” from Netflix, he said. Each Ultra HD stream is about 15 Mbps, “so it takes a good-quality Internet connection,” he said. “Of course, that's getting more and more reliable. So when we see those coming together, we see over time a significant percentage of our membership upgrading to get the Ultra HD service, again, over the next couple of years.” Netflix is confident about its long-term success in Japan after launching there this fall, Hastings said. It plans to launch in Japan with “aggressive” pricing and local content, including “some local originals,” he said. “We're really focused on doing a great job.” Japan is “unique” among other markets “because it's very brand-sensitive,” Hastings said. “So Japan will probably be our slowest market to get to a certain penetration threshold, but it may be one of our best markets in the long term because when the Japanese society embraces a brand, it's a very deep connection, very long-term. So we're willing to make that investment, knowing that it's not the quick route to success that it might be in other countries.”