A Blog by Jonathan Low

 

Jul 20, 2017

Why It Matters That Netflix Now Has More Subscribers Internationally Than In the US

The perception is that Netflix has saturated the US market to the extent possible, so international growth is where its future lies, especially given the cost of producing all that content to compete with network television, Apple and Amazon. JL

Jeff Dunn reports in Business Insider:

The rise of that international base has been Netflix’s biggest boon for the past couple of years. It’s generally accepted that the company has just about emptied the bottle in its home country, but still has plenty of wiggle room left worldwide. The company is still ripping through cash to produce the exclusive shows that differentiate the service
It was a blockbuster for Netflix, as the streaming giant said it added 5.2 million new subscribers in its second quarter, handily beating its own estimates and sending its stock soaring to an all-time high.
And as this chart from Statista shows, the company reached a couple of milestones in the process. First, it surpassed the 100-million subscriber mark. Second, it saw the number of international Netflix subscribers edge past their US counterparts for the first time.
The rise of that international base has been Netflix’s biggest boon for the past couple of years. It’s generally accepted that the company has just about emptied the bottle in its home country, but still has plenty of wiggle room left worldwide. (Its eternal struggles in China notwithstanding.)
The company is still ripping through cash to produce the exclusive shows that differentiate the service — and it will still have to deal with growing competition from Amazon, Hulu, and now Apple — but enough of those shows are hits, cord-cutting should only grow, and Netflix itself expects its current rate of growth to continue.
COTD_7.18 2Mike Nudelman/Business Insider/Statista

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