Netflix arrives in Mexico with a US$70 million investment

After launching in Argentina, Paraguay and Uruguay, Netflix, the provider of TV content over Internet, arrives in Mexico with a total investment of US$70 million for content and marketing. CEO Reed Hastings said the company will be in the recovery stage within three years.“We know we will lose some money at first, but we expect to attract enough subscribers in the next two years to recover the US$70 million investment, and we should see profits by the third year,” said Hastings.Backed by Televisa and TV Azteca, Netflix offers a wide variety of Mexican content, mainly telenovelas and movies. Their agreement contemplates “some licenses, except for those presently being broadcast. That is why we emphasize we are not competing against TV,” he added.Hastings said the growth of this service correlates with the penetration of broadband, and for this reason he believes the Mexican market will embrace it quickly. Regarding mobile device applications, the CEO said that the company will have iPhone and iPad services ready in Latin America in two months.Netflix Mexico launched operations on September 12th, offering the first month for free and charging approximately US$7.99 per month after that.