Netflix Partnering with Japan’s SoftBank, Plans Original Local Content

The Netflix app will also be preinstalled on select SoftBank handsets starting in October.

Netflix, Inc. (NASDAQ:NFLX) has had its one year price target raised at UBS as the analysts there cited various favorable developments for the company.

SoftBank will also enable its subscribers to sign up for Netflix on its website, at its retail outlets or through its call centers.

Netflix said there will be three plans for Japanese users – basic, standard and premium – priced at ¥650, ¥950 and ¥1,450 per month, respectively.

Netflix’s Japan planSoftBank is the third-largest cellular company in Japan, with almost 40 million subscribers – good for 26% market share – according to Japan’s Telecommunications Carriers Association.

Similar to Netflix’s deal with Fuji Media, Softbank will develop original content to be shown on Netflix Japan.

Japan has 36 million households with broadband and has been seen as a logical next step for Netflix as it expands around the globe.

Netflix is setting up shop in a market where it will compete with Hulu, which is owned locally by Nippon TV, and streaming services offered by NTT Docomo and SoftBank’s own Uula.

SoftBank Group President Ken Miyauchi said that SoftBank might jointly create content with Netflix, but details were still unclear. Such a move could stunt the growth of Netflix and other players in the video streaming business. The company has previously said that it plans to be available globally, in more than 200 countries, by the end of 2016, and Asia will feature prominently on its extended rollout.

Of course, the partnership wasn’t the biggest news from Netflix on Monday.

He also praised a technological aspect of the firm, saying Netflix’s recommendation function based on data analysis is effective, as 75 percent of views come from the recommendations.