Industry report

Netflix Statistics And Facts For 2019

Netflix is a popular online movie and television program streaming website and production company located in Los Gatos, California, the United States of America. It started as a website with an online DVD rental service. Over the years, it has grown into a popular household name. Before Netflix came into existence, watching a movie meant waiting for cable operators to stream the movie, or maybe get a DVD rental or download it online from the internet.
Marc Randolph and Reed Hastings started Netflix with the idea of renting video films through mail service. It soon climbed the pinnacles of success and has become a synonym for home entertainment. It has innovated rapidly and has emerged as a leader in providing entertainment solutions to the viewers. Netflix is entertaining and never boring. It offers original content to its viewers with high entertainment quotient and doesn’t annoy its subscribers by popping irritating ads between the shows.

The pioneer in digital entertainment, Netflix, has been leading the industry ever since its inception since 1997. Over 158 million paid subscribers spread over 190 countries, enjoying every bit of its feature films, TV entertainments cutting across a variety of segments and languages. It offers its members, what they want to see, when they want to see, irrespective of time and territorial limits through an internet-connected device. Members can enjoy unrestricted viewing experience; it offers a unique mode of entertainment options to play, pause, and resume watching without any commitments and commercial pop-ups.

A short glance into the history of Netflix gives an idea of how this giant emerged over the years.

History of Netflix

Netflix entered the media world in 1997. It launched its first DVD rentals website in 1998 and introduced a monthly subscription in 1999. Netflix revolutionized this field in 2000 by when it brought in a personalized recommendation system and further innovated with the online streaming services in 2007. Netflix began to stream on Xbox 360, interconnected TVs, etc., by partnering with electronic companies in 2008-2009. This media revolution went global in 2016 when it became available worldwide. The first recognition for Netflix came when it won the Oscars in 2017 for ‘the White Helmets.’

Reason for the popularity of Netflix:

Netflix has grown and become popular for the right reasons. Few of the advantages of Netflix that have been responsible for its success are:

  • It doesn’t crash: Netflix uses Chaos engineering and doesn’t crash.  Thus, it can offer a break free viewing experience making it the favorite among the users worldwide.
  • Personalization of content: Netflix is an innovative media system that offers personalized viewing experience to its viewers. It provides an awesome experience to the viewers.  Viewers can rate the shows, and the data collected are collated to provide them shows and movies according to their personal tastes.
  • Zero ads: Netflix doesn’t disturb the viewing experience with ads in between the movies. It makes movie watching enjoyable, uninterrupted, and break free.
  • Free –trial: Netflix offers a free trial to its viewers. Because of this, people are ready to try out Netflix before subscribing to it. This monthly trial of Netflix has helped it to grow its user base.
  • Simple user interface: The user interface of Netflix is intuitive and straightforward. It helps the users navigate easily and enhances their viewing experience.

Interesting Netflix facts:

  • From humble beginnings in 1997, Netflix has grown to have 139 million subscribers in 190 countries.
  • Netflix started streaming with ‘Watch Now’ has 1,000 titles.
  • The library size of Netflix has been declining over the years. Netflix had over 8,000 titles in the US content library, and it dropped to 5,599 by January 2018.
  • It delivered the billionth DVD in 2007.
  • Netflix has been steadily growing in the content quality and in 2018 alone it received 118 Emmy nominations overtaking HBO
  • Netflix’s share in global video streaming traffic is 26.6 %, and this is the largest. HTTP media stream accounts for 24.4 %, YouTube accounts for 21.3%, Amazon Prime has 5.7 %, and Facebook video accounts 3.4 %.
  • Netflix entered the international arena by offering its services to Canada in 2010
  • On completing 20 years, it has a presence in 190 countries

Interesting Netflix facts:

 

  • From humble beginnings in 1997, Netflix has grown to have 139 million subscribers in 190 countries.
  • Netflix started streaming with ‘Watch Now’ has 1,000 titles.
  • The library size of Netflix has been declining over the years. Netflix had over 8,000 titles in the US content library, and it dropped to 5,599 by January 2018.
  • It delivered the billionth DVD in 2007.
  • Netflix has been steadily growing in the content quality and in 2018 alone it received 118 Emmy nominations overtaking HBO
  • Netflix’s share in global video streaming traffic is 26.6 %, and this is the largest. HTTP media stream accounts for 24.4 %, YouTube accounts for 21.3%, Amazon Prime has 5.7 %, and Facebook video accounts 3.4 %.
  • Netflix entered the international arena by offering its services to Canada in 2010

On completing 20 years, it has a presence in 190 countries

User statistics of Netflix:

 

The increasing popularity of Netflix shows in the growing user base. It had 130 million members in the second quarter of 2018, of which it has 124 paid members. The statistics of June 2018 show that out of the 57.38 members in the United States, 55.96 million are paid ones.

  • A study by Statista shows that 77% of Video on Demand (VoD) users are Netflix subscribers. Considering the age-wise breakup, out of the 18-29 age group, 74% VoD users use Netflix, of the 30-49 age group, 78%, and of the 50-64 age group, 74% use Netflix.
  • Weekly, Netflix users spend 1 billion hours watching movies.
  • 54% of US adults have Netflix access. It is more than the adults having access to DVRs, which is 53%. It was a rapid shift from 2011 when only 26% of the US population had Netflix access
  • Research by Cowen and Company in 2016 shows that 58% of Netflix subscribers subscribe to it for its original program and 51% prefer Netflix because it doesn’t have any ads running in between
  • The same study by Cowen and Co also found that 2 in 5 adults aged 18 to 35 watch Netflix often on TV. As per the study report, it is higher than the figure who watch YouTube which is only 17%

 

Financial statistics of Netflix:

Netflix has grown in size and also leads to financials. In the 4th quarter of 2017, it had revenue of $11 billion, and in Q2 2018, the company grossed a revenue of $3.9 billion.  On original content alone, in 2017, Netflix spent $6 billion. It has surpassed Amazon’s budget of $4.5 billion and HBO’s $2 billion. The second- quarter of 2018 saw Netflix spending $526 billion on promotions with $2 billion on campaigns alone. As of June 2019, the estimated net worth of Netflix is around $155.53 billion. Netflix’s market share shows immense growth potential in Latin America.

  • The net worth of Netflix in 2016 was estimated to be $ 155.53 billion, and in the same year, the market capitalization of this entertainment channel stood at $117.73 billion.
  • The estimated annual revenue of Netflix is $ 16.6 billion showing its worldwide popularity and future potential.
  • Netflix had registered revenue of $15.7 billion in 2018.
  • The quarterly revenue growth is believed to increase by 26% every year. If the company keeps this growth, it will be difficult for the competitors to outrace Netflix.
  • In the 3rd quarter of 2018, Netflix showed a net income of $403 million.
  • The gross profit of the company reached $1.6 billion in the 3rd quarter of 2018. For 2018-19, the gross profit Netflix recorded was $5.83 billion showing a drastic increase. The revenue of Netflix in the US is predicted to reach $7.2 billion in 2020
  • The second quarter of 2018 saw Netflix growing globally, with a $65 million yearly increase in revenue.
  • The 2019 second-quarter net worth of Netflix is about US$155.53 billion.
  • Netflix market cap as of September 26, 2019, reported as $117.73 billion.

Demographics of Netflix Users:

  • Among the US adults, 23% stream Netflix daily. The study shows that as 1 out of 4 US adults who stream Netflix daily and which comes to 58 million people.
  • Netflix is very popular among teenagers. It is 12 times more preferred than other competitors. Statistics say that among teenagers, 37% watch Netflix daily.

 

 

  • Netflix is popular among Video on Demand users also. Study shows that subscription to Netflix from video-on-demand users was 775 million in 2018. If we do a break up of these statistics on age-wise, we can see that 74% of users in the 18-29-year-old group have Netflix subscriptions. From the 30-49 age group people, 78% had subscribed to Netflix, and out of the 50-64 age group, 74% of users had Netflix subscriptions.
  • Netflix is available worldwide; hence, the dependability for watching online content by using Netflix is also increasing. When checking globally, the number of hours people spent watching videos, 8% of people depends on Netflix.
  • The share of Netflix in global traffic is 15%
  • The penetration of Netflix is increasing rapidly and would be covering more households globally. By 2020 it is predicted that Netflix will reach 114 million homes worldwide.
  • Netflix leads in viewership figures also. The total viewership worldwide for Netflix is estimated to be 300 million.
  • Netflix is highly popular in the US. Statistics show that 147.5 million US viewers prefer Netflix. It is the second leading platform they prefer after YouTube. YouTube has 192 million viewers, and Netflix is fast catching up to this figure as well. Netflix has left its other competitors far behind, with Amazon having 88.7 million subscribers and Hulu 55 million subscribers.
  • Netflix enjoys a significant market share of US entertainment online streaming. It has a 51% market share in the US, which is higher than any other entertainment company. Amazon has a share of only 33%, and Hulu stands with 14%. The viewership share of Netflix is expected to continue to grow in the coming years.
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  • The highest penetration of Netflix is among US users. A study by eMarketer shows that in 2018, 64.5% of users were from the US. Norway follows closely with 62.4% of users, and next stands Canada with 56.3% users. Netflix had a low presence in Germany and the United Kingdom, having 35.55 and 33.8% users, respectively.

Recognitions and Accolades:

 

Netflix has received many accolades for the quality that it has been continuously bringing to the table.  It bagged the 2019 Academy Awards for the film Roma in the best picture, best director, best actress, best supporting actress, best original screenplay, best foreign-language film categories.   And it also got 2013-2018, Oscar nomination for original content, and Golden Globe nominations for original content in 2013-2104. In 2018 alone, Netflix has 112 Emmy nominations to its credit.

Other interesting facts:

Netflix app downloads are growing at a fast rate. For August 2019, the US alone recorded a download and install of 7 million Netflix apps. 81% of Netflix viewers preferred to watch Netflix on TV compared to the users who watched Netflix on smartphones and other devices. One of the main reasons for the popularity of Netflix is the high quality, entertaining original shows that it offers. The majority of the viewers watch Netflix for the original content that it produces. 

A study conducted by E-Marketer shows that around 58% of the subscribers of Netflix has brought the package only for the original content. Netflix is not expensive also. Studies show that the charge for viewing content on Netflix app is $0.20 for every hour, and this is quite a reasonable amount considering that Netflix provides its users with unlimited, high-quality shows, movies, and original videos.

A recent study by Fortune shows that Netflix consumes a substantial amount of global bandwidth. It has found that Netflix uses 15% of global bandwidth.  It has over 76,000 hidden movie categories and TV shows.

  • An average user of Netflix watches 60 movies annually.
  • Netflix is a leading entertainment conglomerate in terms of revenue collection. Considering the revenue, Netflix is the 10th largest online company, which is a reason for its popularity.
  • In 2018 alone, Netflix had spent $12 billion for producing original quality content for its viewers.
  • The quantum of original content created in 2018 alone was 1500 hours.
  • In single day Netflix, users spend 140 million hours watching Netflix.
  • The no-ad policy of Netflix saves the time of its users from watching commercials unnecessarily, and the time saved by an average Netflix user stands about150 hours.
  • Most of the viewership of Netflix is on Saturday. Netflix has 26 % of its total viewers on Saturday and is by far the biggest in the industry.
  • As of 2019, Netflix has an active employee count of 5,500

The present net worth of Netflix:

The net worth of Netflix as of June 2019 is $155.53billion. It was able to channel $3.1billion funding over 10 rounds of IPO with NASDAQ ticker NFLX.

The growth story of Netflix is amazing. Started as a DVD rental mail service company, it has become the largest Video-on-Demand streaming services, competing with Apple, HBO, and Hulu. Netflix could reap the access, because of the consistency in service and technological innovations adapted to meet the customers’ demands

Conclusion:

How far will Netflix grow? Its existence as an entertainment media was very doubtful since its inception. But with time, Netflix outsmarted its competitors and proved its worth. It is growing fast and even put behind Amazon, its leading competitor.  The statistics of Netflix speaks volumes of its success. 

Netflix has been doing aggressive marketing over the past years to emerge as the leader in the entertainment industry.  In the 2018 second quarter, Netflix was found to have spent $ 526 million on marketing the app. Despite the fierce competition, Netflix has consolidated its market position and is poised to stay here for an extended period.

 

Source links:

https://muchneeded.com/netflix-statistics/ 

https://appinventiv.com/blog/netflix-statistics-facts/

https://techjury.net/stats-about/netflix/

https://www.statista.com/topics/842/netflix/