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The above graph represents Netflix annual revenue by segment, starting from fiscal 2010 to the recently completed year. Currently, the company has three reportable segments: Domestic Streaming, International Streaming and Domestic DVD. Approximately 52.7% of Netflix global revenue in 2019 came from the International streaming segment.
|Source||Netflix Annual Reports, SEC Filings|
|Note||Netflix fiscal year starts from January 1st|
One must note that Netflix Domestic and International streaming segment revenues, both reached a record high in 2019, while the Domestic DVD revenue declined to a record low.
Netflix Domestic Streaming Revenue
In July 2011, Netflix separated its domestic DVDs-by-mail and streaming subscription plans. Prior to the fourth quarter of 2011, Netflix subscribers were able to receive both streaming and DVDs-by-mail under a single hybrid plan.
In 2012, Netflix revenue from domestic streaming segment clocked $2,184.87 million. In just four years, the company more than doubled its domestic streaming segment revenue. Netflix streaming revenue from the US crossed the $5,077.31 million mark for the first time in FY 2016.
In 2019, the OTT giant generated about 45.9% of its total revenue from the homegrown United States. The total US streaming revenue increased 20.88% YoY in 2019, to an all-time high of $9,243 million.
Netflix International Streaming Revenue
Netflix revenue from International Streaming segment also reached an all-time high of $10,616.2 million in 2019, with a whopping 36.4% YoY growth. The growth was primarily led by the fourth quarter of 2019.
In September 2010, Netflix began its international operations by offering an unlimited streaming plan without DVDs in Canada. With just three months, the company generated $3.62 million in revenue from its streaming services outside the US.
In 2014, Netflix International Streaming segment revenue crossed $1 billion mark for the first time in history. The company generated $1,308.06 million ($1.3 billion) in revenue from International streaming segment, registering a whopping 83% YoY growth.
Netflix Domestic DVD Revenue
As the graph shows, Netflix Domestic DVD segment revenue has consistently been declining since 2012.
In 2012, Netflix annual revenue from DVD-by-mail membership services in the US clocked a record-high $1,136.87 million. In just one year, the domestic DVD revenue declined 20% YoY to $910.8 million.
Surprisingly, in 2019, Netflix revenue from Domestic DVD segment declined to the lowest-ever $297.2 million.
About Netflix Inc: Additional Information
Netflix Inc. (NASDAQ: NFLX) was founded on August 29, 1997, by Reed Hastings and Marc Randolph as a DVD-rental-by-mail firm. However, the company began its operations on April 14, 1998, by opening the world’s first online DVD rental store. For $19.95 a month, subscribers can rent as many DVDs as they want. The company slowly expanded its business by offering the streaming service in the US while retaining the DVD and Blu-ray rental service. In September 2010, the company began offering its streaming service to Canada, which later expanded to other international markets such as Latin America, the United Kingdom, Ireland, Australia, etc. Netflix is now available almost every corner of the world, except in mainland China (due to local restrictions), Syria, North Korea, and Crimea (due to US sanctions).
Netflix’s IPO (initial public offering) completed on May 29, 2002, selling 5.5 million shares of common stock at the price of $15.00 per share.
On January 22, 2018, Netflix’s market capitalization ballooned to $100 billion, becoming the largest digital media and entertainment company in the world.
Netflix is ranked #38 on the list of the World’s Most Valuable Brands by Forbes, with a brand value of $15.5 billion in 2019.
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