Netflix is working on improving its mobile experience, trialling streaming efficiency technology for customers watching videos on smartphones.
The internet TV company told shareholders overnight that it has recently passed 75 million subscribers worldwide, with plans to extend into China. It added more than 17 million customers during 2015 and is aiming for six million net adds during the first quarter of 2016.
Earlier this month, it launched its services in 130 new countries.
In a letter to shareholders, Netflix said: “We recognise that in some parts of the world, mobile is the primary way many people access the Internet. We are improving our mobile experience, including sign up, credentials & authentication, the user interface, and streaming efficiency for cellular networks.”
One way it has worked on its mobile experience is by introducing complexity-based encoding. The technology works by encoding content according to type, rather than based on the bandwidth available to a viewer. Less visually intensive content, such as children’s animation, require less bandwidth than a special effects laden action movie.
Of its Chinese expansion, Netflix said: “We are building relationships, understanding the market, and seeking the conditions we require to provide our service to entertainment lovers there. Our expectations are modest and long‐term.”
One stumbling block could be Netflix’s relative vulnerability to VPNs, which allow viewers to view content outside of the region they are present in.
In its letter, Netflix said it was launching a fresh assault on the likes of TunnelBear or VPNGate. It said: “Recently, we have begun to use a new blacklist and other techniques, as are other SVOD services, as desired by content licensors. Ultimately, our goal is to let members around the world enjoy all the content we have through global licensing.”