Skip to main content

ScreenBytes Executive Interview Series are also available on

SpotifyApple PodcastGoogle Podcast
State of the Screens

200M Reasons Why: Netflix Remains On Top

By January 21, 2021No Comments

Netflix Queen's Gambit

 

Big news: Netflix passed 200M, global users!

Netflix subscriber growth in 2020-Q4 (% of total):
1) International – 7.7M (90%)
2) U.S./Canada – 800K (10%)
3) Total – 8.5M

Netflix subscribers (YoY growth):
1) 2007 – 7.5M
2) 2008 – 9.4M (↑ 26%)
3) 2009 – 12.3M (↑ 31%)
4) 2010 – 20.0M (↑ 63%)
5) 2011 – 23.5M (↑ 18%)
6) 2012 – 33.3M (↑ 41%)
7) 2013 – 44.4M (↑ 33%)
8) 2014 – 57.4M (↑ 29%)
9) 2015 – 74.8M (↑ 30%)
10) 2016 – 93.8M (↑ 25%)
11) 2017 – 110.6M (↑ 18%)
12) 2018 – 139.3M (↑ 26%)
13) 2019 – 167.1M (↑ 20%)
14) 2020 – 203.7M (↑ 22%)

Netflix Passes 200M Subscribers Graph

 

Big question #1: How does one celebrate the 200M subscriber milestone?

Quick answer: Dinner at Denny’s!

Rich Greenfield Denny's Celebration Tweet

 

Big question #2: How does Netflix keep growing subscribers?

Quick answer: By focusing on the customer and delivering consistently great content such as ‘The Queen’s Gambit.’

Key details for ‘The Queen’s Gambit’:
1) Watched by 62M HH
2) Top 10 in 92 countries
3) #1 in 63 countries

Most-viewed original series on Netflix according to Variety:
1) The Witcher (Season 1) – 76M
2) Lupin (Season 1) – 70M
3) La Casa de Papel (Season 4) – 65M
4) Tiger King – 64M
5) The Queen’s Gambit – 62M

 

Netflix's Most Viewed Original TV Shows

 

Why this matters: Netflix seems always to have something new that you want to watch, which is why they have the lowest churn rate in streaming.

Active churn rate according to Antenna:
1) Netflix – 2.7%
2) Industry median – 6.8%

Netflix Survival vs Churn

FYI: More content is on the way in 2021, including 70 original movies.

Netflix movie releases in 2021 by format according to Bloomberg:
1) Live action – 52
2) Foreign language – 10
3) Animated – 8

Big question #3: How can Netflix continue to grow revenue?

Quick answer: Raising prices. As consumers realize more value through quality content, then Netflix can raise prices without increasing churn.

Netflix October 2020 price increase (% change) according to Variety:
1) Standard – $13 → $14 (↑ 8%)
2) Premium – $16 → $18 (↑ 13%)

 

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.

Leave a Reply