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THE NETFLIX TRENDS YOU MISSED ? Image source: Netflix.
NETFLIX DOMESTIC STREAMING TRENDS In millions of dollars $1,200 $1,000 $800 $600 $400 $200 $0 2013 Q2 Q3 Q4 Revenues 2014 Q2 Q3 Cost of revenues Marketing Q4 2015 Q2
DOMESTIC REVENUE Domestic streaming sales rise smoothly. Q2 revenue of $1.03 billion was a 61% increase in 9 quarters.
DOMESTIC COSTS Even better, revenues are rising faster than costs. Over the same period, content costs only increased by 39%.
SHOESTRING MARKETING BUDGETS Marketing costs rose by just 10%. In more than two years. That's peanuts.
NETFLIX INTERNATIONAL STREAMING TRENDS In millions of dollars $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 2013 Q2 Q3 Q4 Revenues 2014 Q2 Cost of revenues Q3 Marketing Q4 2015 Q2
SHIFTING FOCUS OVERSEAS Netflix more than tripled its international sales across these 2 ½ years. Here, both content and marketing costs more than doubled.
MOVE THAT CAMPAIGN TO SPAIN! In the second quarter, Netflix spent $124 million on marketing abroad... ...and $73 million in America.
MAINLY IN THE PLAIN Netflix's international ad spending passed the domestic budget last fall. At these rates, it's kind of amazing that the U.S. market can grow as fast as it does.
NETFLIX OVERALL STREAMING TRENDS In millions of paid customers 70 60 50 40 30 20 10 0 2014 Q2 Q3 International members Q4 Domestic members 2015 Q2 T otal paid members Coming soon to Netflix: Colombian drug drama Narcos.
SHIFTING FOCUS OVERSEAS The heavy marketing pays off. Netflix spends 62% of its ad budget overseas, where it collects 60% of its total subscriber growth.
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