Netflix European HQ for Luxembourg
(ADW) Netflix, the US online film streaming service, has taken the decision to follow in the footsteps of other internet giants and set up European headquarters in Luxembourg.
From the Grand Duchy, Netflix will plan its expansion into the European market.
What is Netflix?
Netflix takes films and TV programmes available on DVD, and makes them available to its customers on the internet via streaming. The business model is unique in the United States and customers pay a monthly flat rate for unlimited online-rental with no date limit, so no overdue fines.
Back in 1997 when Netflix began life, almost all DVDs were sent by post to customers. In recent years however, streaming has become of increasing importance. As feature films are streamed in high resolution, Netflix is responsible for massive amounts of internet traffic, in fact 24% of total national traffic in the US alone.
"An attractive business environment"
The company has been active in North and South America and has announced plans to expand its business into Ireland, the UK and Spain with the headquarters being set up in Luxembourg. "We look forward to doing the same as other internet companies here and take advantage of the attractive business environment," said David Wells, Finance Director of Netflix.
Economy Minister Jeannot Krecké welcomed the planned arrival of another international internet company to Luxembourg in the realm of communications and information technology.