freyami waynelle gemmiah

[Gaetane Eary]

LinkedIn and 3rd parties use essential and non-essential cookies to provide, secure, analyze and improve our Services, and to show you relevant ads (including professional and job ads) on and off LinkedIn. Learn more in our Cookie Policy.

The emergence of Netflix and similar OTT (Over-the-top) services have often been described as the virtual "DVD collection in the Sky". The concept of "Pay a monthly fee and watch as much as you would like" is strong, but of course no stronger than the actual strength of the movie and series content offered.

Just like a dinner buffet, the concept works best if there is plenty of choice and something for everybody. So eating as much as you would like is not in itself really that interesting, if choice is limited. Likewise with Netflix, the concept of "watch till you drop" is only appealing is there is variety.

If you - like me - are old enough to have a collection of DVDs (or even VHS tapes), I am pretty sure your first thought would be, that "its definitely much much more than my DVD collection". And while I have friends who amassed massive DVD (and torrent based collections, if we are to be honest..) movie collections, you are probably right.

The correct answer - for the Danish version of Netflix - is 2.065. And if you think the DK version is a severely watered down version of the main US, well the numbers for the US version is 5.558. (source: www.allflicks.net).

Well, first I would say it is always interesting when consumers perception of an offering does not match the reality. But more importantly, I believe it shows a potential weakness of what is know as the "SVOD business model", ie. a monthly subscription model, in which you can watch unlimited movies. On contrast to metered concepts or pay-per-view (TVOD).

When Netflix originally launched, it was easier for them to get huge back-catalogs of content for a reasonable price, allowing them to launch a massive collection of content for a low monthly price. This is changing (Starz 2011, Viacom 2013 and Epix 2015 are all examples of previous long-term massive content that was not renew). Netflix also did not produce its own original content initially. This is also changing. Clearly the industry is now much more aware of the value of content, and 5-year all-out catalog deals are history. And replacing this with original content is expensive - and takes time.

What people want is quality over quantity. The SVOD business model does not allow for tiering of content, it is basically at its core a buffet offering - where you do not get to limit the customers to "Only 1 meatball allowed per plate". You need to take into account the guy who piles up 25 meatballs on his plate and does not touch the salad bar.

As content costs increases, I believe we will see a trend towards and even slimmer collection, with a focus to original and premium content from Netflix. While Netflix might have a chance to make such a transition based on the sheer size of its success and operations, I would challenge you to come up with an example of a buffet restaurant that have changed into a premium restaurant and still maintained an "all you can eat" concept. Simply put, when quality becomes the primary offering, there is no other way than ala-carte. Meaning we will need to pay to what we watch, and abandon the idea of having it both ways.

There are no two ways about it: Netflix has had a tough year but is still absolutely dominating the streaming video market. According to the Q2 2022 figures, Netflix now has approximately 220 million global paid memberships, and remains the largest premium video on-demand service in the world.

For perspective, Netflix competitor Hulu ended Q2 of 2022 with 45.6 million subscribers in total. While researching the use of VPNs to securely access Netflix, we struggled to find a really comprehensive source of Netflix statistics, facts, and figures so decided to compile our own.

Initially, Netflix only received $2 million in venture capital funding during its Series A funding round from Reed Hastings. Just three years later, during its Series E funding round, it only raised $50 million with three backers.

Now the company is raking in almost $8 billion per year (2022), with estimated operating profits of $5.9 billion. These are impressive figures, however, it is worth noting that the expansion of Netflix is now slowing with the company beginning to lose customers en-masse to its rivals.

The company began offering a subscription-based DVD-by-mail service in 1999. In 2000, Netflix began using a combination of collected big data and analytics tools to recommend videos for users to rent.

After reaching 4 million subscribers in 2004, and realizing the potential higher-bandwidth internet could provide, Netflix launched online video streaming in 2007 alongside its dominant DVD-by-mail option.

Netflix officially branched out to international markets in 2010 with its Canadian launch. 2011 marked a major year for Netflix as the streaming service dove further into the international market, launching in Latin America and the Caribbean. Netflix finally migrated to Europe in 2012, officially becoming available in the UK, Ireland, and Nordic countries.

Netflix continued its march across the globe in 2015, finally launching its service in Australia, New Zealand, Japan, and other locations. As of 2022, Netflix is available worldwide except for a select few countries.

Even as Netflix was available worldwide, the company began to aggressively crack down on region hoppers. On February 29, 2016, reports began rolling in that the streaming service was blocking virtual private networks (VPNs) and other proxy services.

In 2021, Netflix massively extended that record by gaining 129 nominations; of which it won a staggering 44 awards. This set the Emmys record for most wins in a single year, which had previously been held by CBS since 1974.

In a letter to shareholders, Netflix revealed that it had gained an additional 15.77 million subscribers in the first quarter of 2020 alone as billions of people around the world were forced into quarantine and social distancing.

According to statistics from 2019, Netflix viewers across all of its available countries watched around 164 million hours per day of content. Netflix has not released similar numbers since 2017 but has started releasing total viewing stats for select original content.

While Netflix is available in almost every country in the world, its home base is still its most important one. Of the 220 million Netflix subscribers, more than 73 million are in the United States and Canada, with the US leading the pack.

North America has generated paid subscription revenue of $3 billion, which is around 45% of worldwide revenue. In Q2 2022, the average monthly revenue per paying subscriber differed by region as follows:

In May 2020, 55% of surveyed users said they would be willing to pay more to use the service. This is a rise of 8% since December 2019 when 47% of users reported they would pay more than they currently do.

Although the company earns billions each year, its net income in 2019 was small as most of that money went right back out the door. Netflix had a negative free cash flow of $3.3 billion in 2019. However, it saw a positive free cash flow of $1.9 billion in 2020. The company stated it planned to be cash-flow neutral in 2021 and cash-flow positive every year after that.

The company has seen its value grow rapidly over the years. As of October 2022, Netflix had a market cap of over $105 billion. That might sound impressive, but just six months before, its market cap was $160 billion.

Although Netflix content libraries shift in size almost daily, some countries regularly maintain larger library sizes than others. Slovakia currently has the largest library of Netflix content, with 7,990 titles as of October 2022.

Differences in library sizes result in Netflix subscribers paying vastly different amounts on a per-title basis. Netflix subscribers in Liechtenstein on a Standard subscription pay $0.00162 per title, with a library size of approximately 5,982 titles. In contrast, Netflix subscribers in Pakistan pay just $0.00029 per title and have access to a larger library of over 5,974 titles.

In 2019, Leichtman Research Group found that 85 percent of Netflix users stream the service on a TV, indicating that most users have either a TV-connected streaming device like a Roku or Amazon Fire TV, or a smart TV (or both).

Data from uNoGS indicates that Netflix had at least 17,300 titles across all its international libraries as of October 2022. This is a sizeable increase from the 15,400 titles it offered in January 2018.

A drama based on the British royalty, the Netflix original series The Crown cost an estimated $13 million per episode. The sci-fi hit Stranger Things was a runner up with an estimated $12 million per episode.

Netflix recommends a minimum of 5 Mbps for HD-quality streaming, meaning a large percentage of subscribers are streaming in SD quality or less. Very few are streaming in Ultra HD, which Netflix suggests requires 15 Mbps in available bandwidth.

Netflix offers its offer content in over 60 languages. In 2017, the company attempted to massively outsource its translation needs to thousands of individual translators worldwide. That effort lasted just one year. The company shut down its HERMES operation just a year later due to the complexity of onboarding and managing so many translators. Instead, the company outsources the work to a few dozen translation and localization services.

Although around 17 percent of streaming service subscriptions go to Netflix, about a third of people have a Netflix subscription. According to eMarketer, just under 30 percent of individuals worldwide who have one or more subscription services also subscribe to Netflix.

While the average downstream percent worldwide is around 12 percent, there are significant regional variances. In the EMEA region, Netflix streaming accounts for 26.09 percent of all downstream traffic.

90f70e40cf