Majority Of Netflix Subscribers To Be Outside U.S. By 2018

Netflix’s international subscription base is set to surpass its U.S.membership by 2018 according to a new forecast by IHS Market. The report also estimated the streaming service will have more than 75 million international customers by 2020.

Netflix reported 79.9 million paying subscribers in Q2 2016, 46 million of which came from the U.S., with the remaining 33.9 million scattered across the balance of the 190 countries the service is available in around the world.

According to IHS, Netflix's two biggest markets outside of the U.S. are the U.K. and the Netherlands and Nordic territories, which will have 6 million and 5.4 million subscribers by the end of 2016.

Netflix's international growth is the driving force behind the company's decision to create original content it can stream exclusively across the globe. It is also increasingly seeking global rights to programming it licenses from outside studios.

"With the worldwide launch, Netflix has launched a platform upon which it can build and differentiate the service to fit specifics of every region in the future," said Irina Kornilova, senior analyst at IHS Technology, in a statement. "Netflix is starting this localization process in Poland and Turkey this year. Subscribers in these countries can expect an addition of local languages to the user interface, subtitles and dubbing of content. This will help drive new subscriber numbers dramatically."