Netflix's (NFLX) European Expansion Remains Costly Venture

Netflix (Nasdaq: NFLX) is planning to push into three more European markets by this upcoming October as it looks to grab more of the less-connected market.

The WSJ, citing releases issued by Netflix late last Friday, noted that Netflix will offer a slew of older films and TV shows, as well as some original content.

While the broader roll-out has been swift -- Netflix is planning to operate in 200 countries by the end of 2016 -- the effort has sapped profits. The company is planning to be profitable at the start of 2017, but the cost of producing content and acquiring rights is also an investor concern.

In the company's latest quarter, European losses widened to $65 million, from a net loss of $35 million in the same period last year.

As mentioned, online penetration rates in the three upcoming markets are also lower than average, according to the report.

Shares of Netflix are down 1.5 percent.

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