Feeds

Netflix snubs 'Tech City' for Luxembourg

Media2.0sluts mourn

Beginner's guide to SSL certificates

In another blow to star of the Coalition's "digital economy" strategy, Netflix has decided to base its European HQ in Luxembourg, not "TechCity". Although Netflix is using the UK to spearhead its UK expansion - launching its video-on-demand streaming service here first next year - it will instead be “joining the many internet companies that have found it a great place to do business" in Luxembourg, CFO David Wells said on Monday.

Internet companies including Amazon, PayPal, Skype, eBay and Spotify have all put their HQs down in the Grand Duchy. It's proof that low taxes and minimal red tape matter the most, when location decisions are made.

"TechCity" is one of No 10's pet initiative; it's the personal flagship of senior policy advisor Rohan Silva and carries the blessing of PM David Cameron.

The venture is promoted by a quango called UKTI, or "a key delivery body", which drew criticism for inventing ways to blow money recently.

The problem for No 10 is that instead of promoting traditional Tory values of wealth creation and risk-taking, "TechCity" has become synonymous with 'nontrepreneurs' and poseurs, attempting to start what serious investors now refer to as "leisure startups". Founders of real startups don't have time to go to "meetups" all day, let alone Tweet. It's more about living a lifestyle than doing work.

Webidiot on a bike

Meanwhile British science and technology innovation thrives - but not in Shoreditch - while "TechCity" is becoming an emblem of how out-of-touch policy wonks can be - and what a strange, virtual world they live in.

The magazine PC Pro recently found that only a fraction of the much-vaunted "600 new tech firms" in TechCity are actually new, and very few are tech firms.

So contrast the media2.0sluts and nontrepreneurs who talk up the scene with NetFlix itself. This is a real profit-making, publicly-quoted company with 20 million real paying customers. Revenues in the nine months to 30 September were $2.32bn with a gross profit of $864bn from making copyright material attractive. It achieved this without asking for the rules to be bent.

Luxembourg was once the perennial joke in Jeux Sans Frontiers, now it's the Luxembourgers turn to laugh at us... ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.