Netflix is a streaming service that has taken the world by storm in recent years. With its vast collection of movies, TV series, documentaries, etc., it has become one of the most popular streaming platforms globally.
It has also become a leader in original content production, with popular shows such as “Stranger Things” and “Ozark.” With a focus on user experience and a constantly evolving content library, Netflix remains a dominant player in the entertainment industry. Netflix did to the online entertainment industry what online shopping did to change the way we shop.
In this article, we will explore the latest Netflix statistics regarding revenue and usage.
Netflix Statistics Highlights
- Netflix generated 44% of its revenue from the US and Canada in the past five years
- For the first time since 2012, Netflix saw a dip in net income in 2022, earning $4.4 billion
- Netflix’s content expenditure fell from $17.7 to $16.8 billion in 2022
- In 2022, Europe, Middle East, and Africa subscribers outnumbered US and Canada
- In terms of total minutes watched, Netflix continues to outperform YouTube and Hulu in the US
Netflix Overview: History, Services, and Evolution
Netflix was founded in 1997 as a DVD rental service, but it has since evolved into a streaming media giant recognized globally. In 2007, Netflix introduced its online streaming platform, allowing subscribers to watch movies and TV shows directly on their computers. As technology advanced, Netflix expanded to support game consoles, smart TVs, and mobile devices.
Today, the company boasts over 220 million subscribers worldwide, making it one of the most popular streaming services in the world. The company has revolutionized the entertainment industry, offering an easy and convenient way to access a wide range of content without the hassle of physical media or traditional cable TV packages.
Over the years, Netflix has continued to evolve and expand its services. In 2012, the company debuted its first original series, “Lilyhammer,” in collaboration with the Norwegian Broadcasting Corporation. In subsequent years, “House of Cards,” “Stranger Things,” “The Crown,” “Orange is the New Black,” and more were released.
The expansion of the company is nothing but phenomenal. Today, over 9,000 people are Netflix employees.
Netflix Usage Statistics
The number of Netflix subscribers has continued to grow over the years, with the company reporting a 5.5% increase in subscribers in 2022, despite losing over 200,000 subscribers. As of 2021, Netflix had 209 million subscribers in over 190 countries. And this represents a significant increase from the 21.5 million subscribers the company had in 2011. Today, Netflix has over 220 million subscribers globally, with the vast majority in the United States, Europe, and Canada.
The United States/Canada has always been Netflix’s most significant market; however, the situation changed last year. The EMEA (Europe, Middle East, and Africa) region surpassed the UCAN (United States and Canada) as the largest Netflix subscriber base, with 76.7 million users.
In terms of usage, the average Netflix user spends two hours per day on the platform. That is a significant amount of time, indicating that Netflix has become integral to many people’s daily routines.
Another interesting fact about Netflix usage is that the platform is trendy among older adults. More specifically, according to a survey by Finances Online, most subscribers fall within the 35 – 65+ age range, with Gen-Xers and Millennials making up the core of Netflix viewership statistics.
Netflix User Statistics by Region
Netflix has a large and diverse subscriber base, with users from all around the world. With a reach across 190 countries, the company harmonizes its reports according to four regions: UCAN (United States and Canada), EMEA (Europe, Middle East, and Africa), LATAM (Latin America), and APAC (Asia-Pacific). The most significant number of Netflix subscribers is in the EMEA region.
- Europe, Middle East, and Africa – 76.7 million
- United States & Canada – 74.2 million
- Latin America – 41.6 million
- Asia-Pacific – 38 million
Most Streamed TV Series and Movies on Netflix
Netflix runs an expansive library of TV shows and movies which is only second to Amazon Prime Video. The company website houses 3,600 movies and 1,800 TV Shows. Below is a list of the most-watched materials;
Movies (in Million Hours)
- Red Notice – 365
- Bird Box – 282
- The Gray Man – 254
- The Adam Project – 233
- Extraction – 231.3
Series/Shows
- Squid Game (Season 1) – 1.65 billion hours
- Stranger Things (Season 4) – 1.4 billion hours
- Wednesday (Season 1) – 1.25 billion hours
- Money Heist (Season 5) – 793 million hours
- Bridgerton (Season 2) – 657 million hours
N.B: These numbers constantly change as they add new content to the platform and users’ viewing habits evolve.
Revenue Statistics
No doubt, Netflix has been very successful in the last few years as it owns the largest share of the streaming market in the U.S. An interesting question is: How does it make money? Well, it’s a pretty straightforward answer – monthly subscription fees. Also, the company still offers DVD-rental services in the U.S.
In 2020, Netflix’s total revenue amounted to approximately 25 billion U.S. dollars, having grown from 1.67 billion U.S. dollars a decade ago. In 2021 and 2022, the platform garnered a whopping 29.6 and 31.6 billion dollars, respectively. This increase in revenue is due to the 6% growth in average paying memberships and a 1% increase in average monthly revenue per paying membership. Across the three years, Netflix’s net income stood at $2.8, $5.1, and $4.5 billion, respectively.
It is worth noting that, unlike other streaming platforms like HBO Max and Prime Video, Netflix has been ad-free; therefore, it has no ad revenue as of 2022. That is about to change in 2023, though, as the platform recently launched its ad-supported subscription tier. By implication, the company’s revenue is set to see a significant increase in the coming years. According to projections, advertising revenue will reach four billion dollars by 2030.
Netflix Revenue by Region
As discussed above, Netflix generates revenue primarily through its subscription-based business model.
In the United States, Netflix’s largest income market, the platform generated $14.1 billion in revenue in 2022. Available data shows that the US/Canadian market makes Netflix the most revenue. As a result, the streaming service consolidates a larger chunk of its business efforts into creating more regionally-specific materials for users within America and Canada. The figures went up from $11.5 billion in 2020 to $13 billion in 2021.
In EMEA, Netflix has also made significant strides, with the platform generating approximately $7.8 billion in revenue in 2020. The company has been able to attract a substantial subscriber base in countries such as the UK, South Africa, Saudi Arabia, France, and Germany. From $7.8 billion in 2020, the figure went up by a whopping 24.7% ($9.7 billion) in 2021 to 9.8 billion in 2022.
Netflix accrued $4.1 billion in revenue across Latin America in 2022, making it the company’s third-largest market. Up from $3.2 billion in 2020 to $3.6 billion in 2021, 2022 was the first time the figures crossed the four-billion-dollar mark. With the increasing popularity of streaming services in Latin America, Netflix’s revenue in the region will likely continue to grow.
In Asia, Netflix has struggled to make significant revenue, as the market is highly competitive, with local streaming services dominating the market. Coupled with strict regulatory laws and sanctions from the US, as is the case of Syria and North Korea, Netflix is yet to permeate this region properly. However, the company has made inroads in countries such as Japan, with a significant subscriber base. In 2020, Netflix generated $2.4 billion in revenue from Asia, up from $1.5 billion in 2019. In 2021 and 2022, the company recorded $3.3 billion and $3.6 billion, respectively
Netflix Subscription Fees
Subscription fees are the core of Netflix’s revenue. Netflix offers a variety of subscription plans to suit different needs and budgets. Each plan offers different features, so users can choose the one that best fits their needs and budget. As of today, you will find four subscription plans: Basic with ads, Basic, Standard, and Premium. Netflix announced “Basic with ads” just late last year following the company’s resolution to begin running ads.
The Basic with ad plan is the most affordable option and allows users to watch Netflix on one screen at a time in standard definition. At $6.99/month, subscribers cannot access Netflix’s entire library.
The Basic plan retains its old features (no ads) but this time at $9.99/month. You can watch and download movies on one supported device at a time.
The Standard plan costs $15.49/month and allows users to watch Netflix on two screens simultaneously in high definition.
The Premium plan is the most expensive option, costing $19.99 per month, and allows users to watch Netflix on four screens simultaneously in high definition and ultra-high definition where available.
N.B: All plans come with a free trial for new users, and users can upgrade or downgrade their plans at any time. Find more info on Netflix Plans and Pricing here.
Password Sharing and Lost Revenue Statistics
Password sharing is a common issue for streaming services, and Netflix is no exception. And this has become such a problem that sources estimate streaming platforms lose about $25 billion yearly, with Netflix shouldering about 25%. According to the same source, about 36% of Netflix users share their password with at least one member of their family and 13% with a friend they do not live with. That equates to a potential loss of revenue running to about $6.25 billion per year for the company.
FAQs
1. What is the average Netflix user’s age?
The average age for the Netflix user is 34-46 years.
2. What is the highest-rated show on Netflix at the moment?
The highest-rated show to date is Squid game, with 1.65 billion hours. Followed by Stranger Things season 4 with 1.35 billion hours.
Wrapping Up
In conclusion, Netflix has come a long way since its early days as a DVD rental service. Today, it is a leading provider of on-demand streaming video services, offering a wide range of TV shows, movies, and original content to its subscribers worldwide. Its continued evolution and commitment to innovation have established it as a significant player in the entertainment industry with millions of subscribers.
With its focus on producing and distributing original content, Netflix looks set to continue to be a popular choice among consumers for years to come. Despite being ad-free, Netflix still makes substantial revenue from its monthly subscription fees. The numbers are expected to continue to grow in the coming years as the platform continues to invest in original and region-specific content to expand its reach.
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Paul Martinez is the founder of EcomSidekick.com. He is an expert in the areas of finance, real estate, eCommerce, traffic and conversion.
Join him on EcomSidekick.com to learn how to improve your financial life and excel in these areas. Before starting this media site, Paul built from scratch and managed two multi-million dollar companies. One in the real estate sector and one in the eCommerce sector.