Last Updated: June 24, 2020
Everyone loves it.
Welcome to the NETFLIX kingdom.
Let’s warm up with some of the hottest Netflix revenue statistics:
Fascinating Netflix Statistics (Editor’s Choice):
- In Q3 2019, Netflix earned $2.1 billion in revenue.
- By October of 2019, 163.5 million subscribers had Netflix.
- Netflix has 1,300 clusters for recommendations that are based on our preferences for viewing.
- 8% of all time spent viewing videos is spent on Netflix.
The idea of Netflix was considered by Reed Hastings and Marc Randolph in 1997. It became incredibly popular – after all, who wouldn’t want all their favorite shows and movies in one place?
How big exactly is Netflix’s success though?
Well, we have gathered some pretty amazing Netflix revenue statistics that give the answer to that question.
Those Netflix revenue stats can show you where the future of television and streaming lies. They can also help gauge what the next few years of media will look like.
We here at SpendMeNot decided to dive into the latest Netflix statistics.
Let’s see what we got:
Netflix Revenue Stats
The video streaming platform has expanded at an astonishing pace in the last few years. With millions of users, it has impacted how the cinema and TV industries are run.
1. Netflix 2020 revenue so far is $21.4 billion.
This marks a 27% increase year-over-year
The first quarter, concluding with March 31, resulted in $5.6 billion of income.
The total revenue for 2019 was $20.15 billion, a 27% increase with the year prior.
The 2018 income was $15.79 billion, 35.8% jump, while in 2017 Netflix earned $11.69 which was a 32.4% increase as opposed to 2016.
2. Netflix makes a lot of money from DVD rentals.
The Netflix revenue report shows that the company earned almost $450 million in profits from DVD rental services in 2017. 4 million subscribers of Netflix still had rental subscriptions in 2016.
Not gonna lie, it was quite the surprise for us that so many people still watch DVDs!
However, this rate is slowing down over time, with many DVD rental stores closing down.
3. Netflix paid almost $300 million to be able to stream Disney content exclusively in 2016.
Netflix debt had risen to almost $3 billion after that deal with Disney, but analysts’ trust remained intact in the company.
The streaming platform had invested a lot in being the exclusive platform to stream Disney. Unfortunately, that went down the drain after Disney launched Disney Plus in 2019.
4. The personalized recommendation engine saves Netflix $1 billion every year.
(Source: Business Insider)
Netflix annual revenue shows that the personalized recommendations algorithm are not only great because they make searching faster, but they also save money! By correlating the user to their preferred genre, they are able to increase binge-watching and time spent on the app.
It’s a win-win.
5. Netflix subscribers pay $11.56 monthly on average for the service.
10 years ago, customers used to pay around 40% more to use the streaming service. The cost for subscribers was around 20 dollars while acquiring a new customer cost Netflix around $48. Now, Netflix spends around $15.25 to acquire new subscribers to the platform.
Netflix Revenue Demographics
6. Early in 2019, Netflix had 148 million subscribers worldwide.
(Source: Business Insider)
How many subscribers does Netflix have now? By 2020, Netflix had almost 167 million paying subscribers worldwide. 60 million of them reside in America.
7. Netflix is available in more than 190 countries.
(Source: Harvard Business Review)
The streaming service platform was only available in the US when it started. Netflix user demographics show that it has now expanded globally to more than 190 countries.
In the beginning, the growth was pretty slow. Now though, it’s a global phenomenon.
The expansion was so great that international revenue exceded the domestic one for the first time in 2018.
8. 23% of adults in the US stream Netflix daily.
(Source: Marketing Charts)
1 in 4 adults in the US actually streams their favorite movies and TV shows every single day. This means that 58 million adults use the streaming service daily.
Let’s be honest here.
What are you all procrastinating?
9. 37% of teenagers stream Netflix daily.
(Source: Business Insider)
Netflix user demographics show that almost 37% of all teenagers use Netflix to watch their shows. Netflix is more popular than its competitors among youngsters.
Besides, no other streaming services has it’s own meme.
And not, that was not an offer.
Netflix 2019 Spending Statistics
10. $12 Billion was spent by Netflix for content creation in 2018.
Back in 2017, the company spent almost $9 billion to create original content. Netflix gives great value to its original production for profit.
Wall Street’s report for Netflix spendings on original content shows that the company had spent around $15 billion on original content in 2019.
11. In 2018, Netflix spent more than $2 billion on marketing.
This was a growth of 67% for the company’s marketing efforts.
These Netflix marketing spendings show that Netflix doesn’t save money when it comes to marketing of their own productions. Shows like Stranger Things have made a huge chunk of profit for the company. However, Netflix wants to continue to work on their organic, ‘free’ marketing strategies.
Netflix Growth Trends
12. The Netflix revenue growth rate shows that Netflix is set to earn $7.2 billion in the US alone.
Netflix revenue analysis shows that Netflix has only grown in terms of revenue over the years.
In 2011, they made $1.6 billion in the US. But by the end of the decade, they have managed to earn $5.4 Billion. This shows steady growth in profits for the company.
13. In 2002, Netflix shares cost $15.
(Source: Crunch Base)
The company was introduced to the public in 2002 with 5.5 million shares up for sale. Back then, the company was valued at $82.5 million. Netflix stock price trends show that the company has an estimated market value of $147 billion. This puts the price of their shares at $339.
This is an astonishing Netflix revenue per share growth rate – more than 2000%!
14. Netflix will be used in more than 114 million households by the end of 2020.
Netflix subscriber growth shows that Netflix could reach up to 114 million households by the end of 2020!
The Netflix revenue forecast is based on a compound growth rate of almost 9%. The biggest reason for the increase in such growth is attributed to authentic locations for filming Netflix shows.
Netflix Market Share
15. The time spent watching Netflix is 8%, which is set to increase in the near future.
In total, Netflix is responsible for 8% of all time spent watching videos.
While competitors for Netflix continue to emerge, no streaming service is as popular in the international market as Netflix. Netflix has contributed to this by expanding to the majority of countries in the world. This has ensured that it has secured a larger chunk of time spent watching than other services.
16. Netflix consumes 15% of the world’s internet bandwidth.
In the US, almost 20% of all internet bandwidth is spent on Netflix. Netflix is also responsible for almost 5% of the global app traffic.
Not bad, Netflix. Not bad.
17. In the last quarter of 2019 up to the beginning of 2020, Netflix reported record-breaking viewership stats.
Around 76 million different households tuned in to watch The Witcher, a hit fantasy series by Netflix.
83 million accounts tuned in to watch Underground by Michael Bay.
Do keep in mind that Netflix has recently changed what it counts as a ‘view.’ People who watched the show for even 2 minutes are counted as a view.
18. Netflix comes second for most viewers in the US, right after YouTube.
YouTube remains the biggest streaming service on the planet, with almost 192 million viewers in the US alone.
In the Netflix vs. Hulu vs. Amazon Prime vs. HBO Now competition however, Netflix beats them all. Netflix has around 147.5 million viewers, while Amazon comes in 3rd at 88.7 million. Hulu is in 4th place with 55 million viewers, while HBO Now is in 5th place with 17 million. Sling TV has only 6.8 million viewers.
19. Netflix has 51% of the US streaming market share.
While Netflix does face a lot of competition in the market, it is still on top of the streaming services in the US. It has 51% of the market share for streaming services. Hulu has 33%, while Amazon Prime comes third with 14% of the streaming market share. This share is most likely to rise as the company continues to become a major contender for TV and movie consumption.
20. Netflix has the highest user penetration in the US and Norway.
(Source: Business Insider)
According to the stats for Netflix revenue per country, the user penetration rate of Netflix is as follows:
- United States: 64.5%
- Norway: 62.4%
- Canada: 56.3%
- Denmark: 54.9%
- Sweden: 50.2%
- Netherlands: 43.6%
- Australia: 42.7%
- Finland: 39.7%
- Germany: 35.5%
- UK: 33.8%
Are you still watching? 😉
Netflix is one of the biggest streaming services in the world. It essentially changed how we watch entertainment shows and impacted how the industry is run.
Netflix revenue stats is currently the king of almost everything the light touches. But services like Hulu, Amazon, Disney Plus, and HBO Now might turn out to be Scar in this story.
How will all of this play out?
You’ll have to click on “Next episode” to find out…