Netflix Statistics: Netflix is a media-services provider developed by Marc Randolph and Reed Hastings. The primary business of the company is subscription-based streaming OTT service, through which it offers online streaming of television programs and films, including programs produced in-house.
The company operates through three reportable segments namely Domestic Streaming, International Streaming, and Domestic DVD. Revenue from the domestic streaming segment comes from subscribers in the US; whereas revenue from the international streaming segment comes from members outside the US for only streaming content. Revenue from the domestic DVD segment comes from monthly membership fees for services such as DVD-by-mail. Using the Netflix streaming software, subscribers can instantly watch content through any Internet-connected device that offers the Netflix app. These include smart TVs, game consoles, streaming media players, set-top boxes, smartphones, and tablets.
On April 14, 1998, the Netflix.com website was launched. Before the launch of this site, movie lovers would have to physically go video stores to get a movie to watch at home. However, with the advent of Netflix, and the Internet, of course, one could browse the virtual aisles on Netflix, rent a movie, and pay for shipping through the site’s e-commerce platform. In two to three business days, the desired DVD sealed in a red envelope would arrive by postal service. The renter was required to return the DVD via mail in the same packaging after seven days. Customers mostly rented for a monthly fee as they could watch as many movies as they liked. The total number of DVDs in their possession at any one time was based on the subscription plans.
Netflix developed and maintains an extensive personalized video-recommendation system based on ratings and reviews by its customers. On October 1, 2006, Netflix offered a $1,000,000 prize to the first developer of a video-recommendation algorithm that could beat its existing algorithm Cinematch, at predicting customer ratings by more than 10%.
In 2007, the company began offering subscribers the option of streaming some of its movies and television shows directly to their homes via the Internet in the US and began providing service to other countries from 2010 onwards.
Netflix’s video-on-demand streaming service, formerly branded as Watch Now, allows subscribers to stream television series and films via the Netflix website on personal computers, or the Netflix software on a variety of supported platforms, including smartphones and tablets, digital media players, video game consoles and smart TVs. According to a Nielsen survey in July 2011, 42% of Netflix users used a standalone computer, 25% used the Wii, 14% by connecting computers to television, 13% with a PlayStation 3, and 12% an Xbox 360.
Netflix has become the world’s TV service and video store and has over 151 million subscribers across almost every country in the world. The company employs more than 9,400 people currently out of which 6,900 works in the streaming segment. These employees helped in a generation of more than US$ 11 billion in revenue in 2017 and reported net sales of US$ 15.7 billion in 2018, which proved to be the most successful year to date. Netflix is worth around US$ 135 billion, which is more than most of its major media rivals.
With the growing trend and preference for subscription video-on-demand (SVoD) services, the company is expected to continue to witness a lucrative growth rate in terms of revenue in the years to come.
In 2017, Netflix, Inc. was ranked 7th, among various Internet-based companies in the world. In 2018, Netflix was the highest-rated TV network in the US. Moreover, the company was awarded 23 Primetime Emmy awards in 2018.
In October 2018, according to Global Internet Phenomena Report published by Sandvine, Netflix takes up to 15% of the global downstream bandwidth. The downstream bandwidth value goes up in the US as it accounts for 19.1%.
For the six months ended 30 June 2020, Netflix Inc’s revenues increased 26% to $11.92B. Net income increased from $614.7M to $1.43B. Revenues reflect Revenue per Customer – Average DVD US increase of 5% to $13.17. Net income benefited from a Marketing decrease of 23% to $938.2M (expense). Basic Earnings per Share excluding Extraordinary Items increased from $1.41 to $3.25.
Netflix – Quarterwise Revenue, in Million, Q1 2016 – Q2 2020
Netflix’s – OTT Video Service User Penetration Rate (%), 2014 – 2020
Netflix – User Account Sharing (%), as of 2020
Netflix – Number of Paid Members, in Million, 2017 – 2020
In 2019, Netflix had 195.15 Mn paid members across the globe, which increased by 76.3% as compared to 2017.
Netflix – Comparison of Video Streaming Traffic Share (%)
Netflix has the largest share of global video streaming traffic. In comparison, YouTube has 23.3% of the traffic, Amazon Prime Video 6.7%, Facebook Video 3.9%, and Hulu 0.4%.
Netflix – VoD User Share (%), as of 2019
According to Statista, this percentage of video-on-demand users is on Netflix. Of the 18 to 29-year-old group, 45% of VoD users are on Netflix. In addition, 30 % of 30 to 49-year-olds and 25% of 50 to 64-year-olds use Netflix.
Netflix – Paid memberships at end of the period, as of 31st December 2016 – 2018
Background History of the Company:
1997: Netflix Inc. started as a video rental and distribution company
1999: The company began offering an online subscription service through the Internet
2007: The company began offering subscribers the option to stream some of its movies and television shows directly to their homes through the Internet in the US
2010: Netflix introduced a streaming-only plan which included unlimited streaming service, but no DVDs
2010: Netflix then expanded beyond the US and began offering the streaming-only plan in Canada
2011: The company started unlimited streaming services in Latin America and the Caribbean
2013: Netflix launched its first three original series – House of Cards, Hemlock Grove, and Orange Is the New Black
2016: The company became global (except in China)
2017: This is another good year for Netflix. They win their first Academy Award, for Best Documentary Short Subject for “The White Helmets”
2018: This year, Netflix wins more Academy Awards for its original content, including Best Documentary Feature for “Icarus”
2019: On May 9, 2019, Netflix made a deal with Dark Horse Entertainment to make television series and films based on comics from Dark Horse Comics. That same day, Netflix acquired the StoryBots children’s media franchise as part of a commitment to expand its educational content.
2020: On February 25, 2020, Netflix formed partnerships with six Japanese creators to produce an original Japanese anime project. This partnership includes manga creator group CLAMP, mangaka Shin Kibayashi, mangaka Yasuo Ohtagaki, novelist and film director Otsuichi, novelist Tow Ubutaka, and manga creator Mari Yamazaki.
Netflix Quarterly Revenue By Region, 2019-2020
2019 Financial Overview:
- In the year 2019, the operating income of Netflix, Inc. was 20,156 Mn US $
- In the year 2019 Gross margin of Netflix, Inc. was 38.3%
- In the year 2019, the operating income of Netflix, Inc. was 2,604 Mn US $
What’s new in 2020?
- In January, Netflix and Ben & Jerry’s partnered to launch a new Chill’d ice cream.
- Contracts/Agreements; In January, Netflix and Sky signed an agreement to give Sky customers the option of taking up the Netflix Basic Plan on Sky Q in the UK.
- In January, Netflix partnered with Nexus Studios for the dark comedy ‘The House’ series.
- In March, the company announced its plans to buy the movies were delayed due to the coronavirus pandemic.
- In March, the company introduced a new slate of Korean shows with content from reality to crime and sci-fi to romance, dramas, and others.
- In March, the company entered into a partnership with Google Chrome and introduced Netflix Party, a new feature to allow a group of friends to view content together at the same time.
- In March, the company announced its plans to open a new office in Rome by 2021.
- In January, the company launched “The Goop Show” for its customers.
- In April, the company introduced new parental controls, which include PIN protection features, to prevent kids from accessing specific profiles.
- In June, Netflix sold its operations in the Asia-Pacific region to Tencent.
- In October, Netflix entered into a partnership with Microsoft to create new data science learning modules.
- In November, Netflix established a branch office in Korea.
- In October, Netflix entered into a partnership with Norfolk State University to launch three online boot camps.
- In December, Netflix announced its plans to open an office in Istanbul, Turkey.
Fun facts:
- As of July 2020, total Netflix subscribers are around 192.95 Million
- As of Q4 2019, there are 100+ million paid memberships outside the US
- In a minute in 2020, 764,000 hours of videos are watched
- As of Q2 2020, there are 72.9 million paid subscribers in the US and Canada, 61.48 million subscribers in Europe, the Middle East, and Africa, 36.07 million subscribers in Latin America, and 22.49 million subscribers in the Asia Pacific region.
- North America is the largest market for Netflix.
- Netflix is enjoyed in almost every country around the world
- The majority of the adult age group from 18 to 54 years old subscribe to the service.
- Our Planet is the highest-watched original docu-series through its first four weeks that is 33 Mn households
- In Q2 2019, 40 of the original series, films, and specials were nominated for 117 Emmy awards
- A 2016 study found that 58% of Netflix subscribers choose the service because of its cost-effectiveness
- According to survey data from 2017, 54% of US adults were using Netflix, with 23% streaming Netflix daily and 81% streaming on a TV set
- 64% of households have a subscription video-on-demand (SVOD) service from Netflix, Amazon Prime, and/or Hulu
- In 2017, 23% of all adults were streaming Netflix daily, compared to 6% in 2011
- Latin America is Netflix’s largest market, with high growth potential
- Netflix accounts for almost one-third of traffic in the US during primetime
- Netflix has its own awards – the Flixies
- The CEO, Marc Rudolph, first named Netflix Kibble.com, after his dog
- Netflix is the largest contributor to Internet traffic
- A new hire on Netflix starts out at US$ 18 an hour
- Rectangular envelopes are a norm at Netflix
- Netflix was almost purchased for US$ 50 Mn by Blockbuster in 2000
- The most-watched show on the US version of Netflix is The Breaking Dad
- Movies that require subtitles are included under a special category
- Netflix premium members watched at least one movie per day in 2017
- Globally, Netflix’s members broke a re-watch record by streaming Pirates of the Caribbean: The Curse of the Black Pearl 365 times in 2017
- The most affordable country to subscribe to Netflix is Turkey
- Netflix has a market value of 157.3 billion US$
- “Orange Is the New Black” is the important show of the decade, according to Time Magazine.
- As per Google Search Trends and Netflix report, Netflix’s “Witcher” series was leading among the other platform shows at the end of 2019
List of Netflix Subsidiaries:
- DVD.com – Rents DVDs by mail
- Millarworld – A comic book company that was founded in 2004 by Scottish comic book writer Mark Millar as a creator-owned line.
- Netflix Pte. Ltd. – Netflix’s studio in Singapore.
- Netflix Services UK Limited – A British division that holds Privately limited with Share Capital.
- Netflix Streaming Services International B.V. – A Netflix subsidiary in the Netherlands.
- Netflix Streaming Services, Inc. – A subsidiary that licenses and streams all of Netflix’s films and shows.
- Netflix Global, LLC – A Foreign Limited-Liability Company filed on August 3, 2016, that co-produces all foreign programming and films
- Netflix Studios – A film and television studio that co-produces any original or foreign content.
- Netflix Services Germany GmbH – A studio that contributes to German film subsidies supporting domestic movie and TV production in the country.
- NetflixCS, Inc. – Another located at 1108 E SOUTH UNION AVE Midvale, UT 84047.
- Netflix Luxembourg S.a r.l. – A subsidiary located in Luxembourg, Europe.
- Netflix Services Korea Ltd.- A subsidiary located in Seoul, South Korea.
- Netflix Entertainment Korea Ltd. – A content subsidiary located in Seoul, South Korea.
