200M Reasons Why: Netflix Remains On Top

Big news: Netflix passed 200M, global users!

Netflix subscriber growth in 2020-Q4 (% of total):
1) International – 7.7M (90%)
2) U.S./Canada – 800K (10%)
3) Total – 8.5M

Netflix subscribers (YoY growth):
1) 2007 – 7.5M
2) 2008 – 9.4M (↑ 26%)
3) 2009 – 12.3M (↑ 31%)
4) 2010 – 20.0M (↑ 63%)
5) 2011 – 23.5M (↑ 18%)
6) 2012 – 33.3M (↑ 41%)
7) 2013 – 44.4M (↑ 33%)
8) 2014 – 57.4M (↑ 29%)
9) 2015 – 74.8M (↑ 30%)
10) 2016 – 93.8M (↑ 25%)
11) 2017 – 110.6M (↑ 18%)
12) 2018 – 139.3M (↑ 26%)
13) 2019 – 167.1M (↑ 20%)
14) 2020 – 203.7M (↑ 22%)

Big question #1: How does one celebrate the 200M subscriber milestone?

Quick answer: Dinner at Denny’s!

Big question #2: How does Netflix keep growing subscribers?

Quick answer: By focusing on the customer and delivering consistently great content such as ‘The Queen’s Gambit.’

Key details for ‘The Queen’s Gambit’:
1) Watched by 62M HH
2) Top 10 in 92 countries
3) #1 in 63 countries

Most-viewed original series on Netflix according to Variety:
1) The Witcher (Season 1) – 76M
2) Lupin (Season 1) – 70M
3) La Casa de Papel (Season 4) – 65M
4) Tiger King – 64M
5) The Queen’s Gambit – 62M

Why this matters: Netflix seems always to have something new that you want to watch, which is why they have the lowest churn rate in streaming.

Active churn rate according to Antenna:
1) Netflix – 2.7%
2) Industry median – 6.8%

FYI: More content is on the way in 2021, including 70 original movies.

Netflix movie releases in 2021 by format according to Bloomberg:
1) Live action – 52
2) Foreign language – 10
3) Animated – 8

Big question #3: How can Netflix continue to grow revenue?

Quick answer: Raising prices. As consumers realize more value through quality content, then Netflix can raise prices without increasing churn.

Netflix October 2020 price increase (% change) according to Variety:
1) Standard – $13 → $14 (↑ 8%)
2) Premium – $16 → $18 (↑ 13%)

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