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Tarja Rabito
The key is their ability to personalize experiences and address customer needs over time. They invest in creating fantastic algorithms that keep their users wanting more. Content recommendations are personalized by user and are constantly changing based on shifting customer preferences, new features AND original content are continually rolled out based on customer feedback, and the digital user experience is made easy for anyone to navigate.
Incremental LTV is a metric that measures any additional long term value you can expect to receive from acquiring/retaining another user when compared a user that had not been acquired or retained at all. Analyzing incremental LTV is how Netflix more accurately quantifies how much value each individual investment in retention or acquisition provides, which helps to improve the success of forecasting future subscriber numbers and fully optimizing pricing strategies.
More specifically, what Netflix is trying to do is look beyond larger data to understand their customers on a deeper level. An average LTV number may give out some useful information, but being able to calculate incremental LTV to find out how much value customers might provide on an individual level matters even more if the goal is precision.
The number of Netflix subscribers reached 213.56 million in Q3 of 2021, making it evident that this streaming service has the largest subscriber base on the market. The Walt Disney Company comes in second with 174 million subscribers across all three streaming services (Disney+, Hulu, ESPN+). We should note that, although Amazon Prime has 200 million subscribers, there are no figures on how many of them use their streaming perks.
The US and Canada accounted for the majority of Netflix subscribers, and according to Netflix statistics by country, the two accounted for roughly 74 million of the 214 million Netflix subscribers worldwide. With around 70 million subscribers, Europe, the Middle East, and Africa came in second, followed by Latin America with approximately 39 million. The Asia Pacific has the lowest number of subscribers, just over 30 million.
A recent survey conducted by Kill the Cable Bill meanwhile found that 52.5% of Netflix consumers share their passwords with another household. Netflix statistics show that nearly 18% say they share with a friend, 25.6% share with a family member who is not in their immediate family, and 9.2% share with a child who lives outside the house. Netflix, on the other hand, loses about $6 billion a year due to password sharing.
As one of the most popular streaming services globally, Netflix is available in virtually every country. However, which TV series and movies you can watch is determined by your geographic location, and in certain countries, the choices are quite limited. To get around this barrier, many users turn to Netflix VPN services. According to Netflix user statistics, almost 56% of all VPN users access the streaming platform each month.
The streaming giant still manages to make the best of DVDs, profiting handsomely from DVD sales, Netflix usage stats show. The firm generated $239 million in DVD sales in 2020. However, more customers are switching to on-demand services, resulting in a significant decline in DVD sales and memberships.
Netflix viewership statistics show that the Spanish series Money Heist: Season 4 continues to be Netflix's most attention-grabbing title, with an astonishing 65 million viewers worldwide. Tiger King came in second with 64 million viewers, followed by The Queen's Gambit in third with 62 million.
The Mandalorian, a Disney+ original series, was the only non-Netflix show to make the top 10 original content series by streaming services. Netflix's Ozark came in at the top with 30.46 billion minutes streamed in the United States. Netflix statistics further unveil that the top 10 most-watched shows purchased from other networks in 2020 were hosted on Netflix.
Looking into Netflix demographics, we can see that the service is now available in nearly every country and territory in the world. The company began expanding internationally in 2010, and by 2017, it had 190 countries under its belt. That said, there are four countries/territories left in the world that remain Netflix-free, namely China, North Korea, Syria, and Crimea.
This marks a significant increase from the $11.8 billion spent on content in 2020, which was impacted by the pandemic, and a $13.9 billion spent in 2019. The production of original titles is estimated to account for almost half of all content spending.
In 2019, Netflix users spent an average of two hours each day on the platform. Following the Covid-19 lockdowns, there was a 61% surge in streaming activity. During the quarantine, the average Netflix user streamed roughly 3.2 hours per day, according to Netflix viewership statistics. When we take all users into account, this works out to approximately 203,840,000 hours per day viewed.
According to a survey conducted in August 2021, Netflix is significantly more popular among younger consumers than older generations, with 75% of 18 to 34-year-olds and 72% of 35 to 44-year-olds stating they have a Netflix subscription. The platform is used by only 44% of people aged 65 or above. Although the streaming service appeals to people of various ages and backgrounds, Netflix subscriber statistics show that the average user is a millennial with a yearly income of less than $50,000.
When it comes to gender demographics of Netflix users, the streaming service has a fairly balanced ratio of 52% vs. 48%. Only Hulu (also 52/48) has the same balanced gender ratio among rivals. CBS All Access meanwhile has a male-to-female ratio of 62% to 35%, making it one of the most lopsided platforms.
Since 2014, this figure has been gradually increasing, with a quarterly rise in the number of subscribers, reaching over 15 million in the third quarter of 2020. Netflix statistics for the UK further reveal that in Q1 of 2020, this was the most popular streaming service in the United Kingdom, with over 13 million memberships, compared to 7.9 million for Amazon Prime.
Given that 70% of Gen Z has a Netflix subscription, it's not surprising that gaming will become a bigger part of the company's strategy. Netflix has already blazed a trail with interactive shows like Black Mirror: Bandersnatch (2018) and You vs. Wild (2019), which involve audience interaction. Most newer devices, including TVs, gaming consoles, web browsers, and mobile devices running the current version of the Netflix app, support these interactive shows.
In 2020, the average number of hours spent viewing Netflix every day has increased by 60%, from 2 hours in 2019 to 3.2 hours in 2020. In addition, Netflix vs cable statistics show that TV production was paused, resulting in a 75% increase in repeat shows. As a result, a large number of people turned to streaming services like Netflix.
With over 14.17 million subscribers in 2020, Netflix is by far Australia's most popular subscription television provider. That said, adults in Australia are increasingly subscribing to multiple video streaming services. According to Netflix statistics for Australia, 3.3 million people have a Netflix and Foxtel membership. Moreover, many users have recently begun to subscribe to Disney+. In Q1 of 2020, over 1.85 million Australians subscribed to both Netflix and Disney+.
While traditional TV still accounts for the majority of TV viewing, Netflix is following closely with 31% of total TV viewing, with smart TV (which includes video-on-demand services) accounting for 24% and connected-TV devices like Roku at 8%. That said, Netflix statistics for Singapore disclose that the service accounts for nearly 50% of SVoD subscriptions in Singapore, followed by Amazon Prime (10%).
Within the same time frame, customer retention for the Disney+ monthly plan (represented by U.S. customers who made their first purchase at the $6.99-$9.98 price point) was lower than the Disney+ bundle, with an average of 62 percent of customers remaining subscribed after six months. Notably, this cohort excludes annual subscribers and those who made their initial purchase with Premier Access, the Disney+ plan for select new movie releases.
Discovery+, which launched in January 2021, is one of the newest entrants in the crowded streaming industry and marks a continuation of TV networks creating streaming platforms in addition to their cable offerings. Even though Discovery+ has been around for just over one year, its customer retention rates have outpaced several of its competitors in the same time period. Among cohorts that made a purchase in 2021, the average six-month customer retention rate for Discovery+ was 64 percent, behind Netflix and the Disney+ bundle, but at the same level as Hulu, and ahead of other TV-network platforms Peacock and Paramount+.
Notably, Bloomberg Second Measure data only includes paid U.S. subscribers. Our data also excludes free trials, as well as promotions such as free access through partnerships with Verizon. It also does not include transactions from the Apple App Store, Google Play, gift cards, Telco Carrier Billing, transactions through gaming consoles, and some types of bundling including cable and media bundles. Amazon Video has been excluded from this analysis because transactions include movie purchases and rentals made through the service in addition to subscriptions, and exclude complimentary Video subscriptions associated with Amazon Prime membership.
Disney+ recently announced its intention to launch an ad-supported tier in 2022, following in the footsteps of many of its streaming competitors. Among the streaming services in our analysis that offer both an ad-supported tier and an ad-free plan, most of them saw slightly higher customer retention rates with the ad-free version in 2021.
The pandemic led to increased demand for streaming services. As new players have entered the market and the industry competes for more eyeballs, streaming services are seeking ways to stand out. In 2021, movie studios including Disney and Warner Bros simultaneously released new features to movie theaters and to streaming platforms (Disney+ and HBO Max, respectively). In fact, Disney+ launched Premier Access fees for select new movie releases, starting with Mulan in late 2020. More recently, Amazon finalized its deal to acquire MGM and add thousands of movies and TV shows to its Prime Video streaming service.
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