Knowing how much money Netflix makes can be one of the doubts that most generates for people, either for information or simply to use it as gossip. Worry no more, here I will tell you how much money Netflix actually makes, either with its national or international transmission services.
How Much Money Netflix Makes – Find Out the Truth
It is normal to wonder what are the best Chrome extensions to take advantage of Netflix or even know who is using the Netflix account. But of course, sometimes the doubts go further and one like this is presented.
And if you want more, I also bring the information of the Netflix segments . So keep reading so you don’t miss out on this interesting information.
Netflix finances
To find out how much money Netflix is making, you need to know that the company has posted negative cash flow since 2011 due in large part to the company’s marketing strategy.
And also spending a lot to fund growth, including the company’s original entertainment production. Despite that negative cash flow, Netflix has seen significant gains in its net income in recent years.
So don’t worry, unsubscribing from your Netflix account won’t make much of a difference to your accounts.
For fiscal 2019, annual net income was $ 1.9 trillion , an increase of 54.1% year-over-year. Although Netflix now operates as a single business segment, the company’s 10-K for fiscal 2019 provided information that reflects historical segment information.
Contributions to 2019 earnings for domestic broadcast, international broadcast, and domestic DVD were $ 3.3 billion, $ 1.6 billion, and $ 174 million respectively.
National transmission comprises two-thirds of profits, although it represents less than half of the company’s revenue.
In fiscal 2019, Netflix reported revenue of $ 20.2 trillion , 27.6% more than the previous year. Like net income, Netflix’s income has grown at an impressive rate.
Since 2015, for example, income has almost tripled and net income has grown more than 13 times, which is a good profit.
Netflix’s business segments
Unlike many other media companies, Netflix does not sell ad space on its site, nor does it sell your user data.
Essentially, to know how much money Netflix is making, it is first necessary to know that the company’s only source of income is its subscriptions .
Streaming services are available in three tiers, with higher-cost subscriptions offering streams to additional devices and in higher definition.
Although it now operates as a single business segment, it is worth taking a closer look at the company’s historical segments.
DVDs
Netflix’s original DVD subscription service continues, although it is in decline. At the end of 2019, only 2,153,000 domestic DVD subscriptions remained .
This represented less than $ 300 million in revenue and $ 200 million in contribution benefits for 2019.
International broadcasts
With more subscriptions than national broadcasting by approximately 75%, international broadcasting represents the highest revenue, with more than $ 10.6 billion in 2019 .
International streaming ended the year with more than 106 million fully paid subscriptions . However, after the cost of revenue and marketing, the international broadcast for 2019 had a contribution benefit of $ 1.6 billion.
Domestic broadcasts
This part has grown rapidly in the last year, leading to more than 61 million paid subscriptions by the end of 2019, but has been overtaken by international streaming.
After the cost of revenue and marketing, national broadcasting accounted for $ 3.3 billion in contribution benefit, the largest of all categories.
Based on supplemental information from Netflix reports, domestic broadcasts generated $ 9.2 billion in revenue in 2019, or 45.8% of the total .
