The above graph represents the Netflix quarterly ARPU by region, starting from fiscal Q1 2018 to the recently completed quarter. ARPU is defined as the average monthly revenue per paying membership of Netflix streaming content in a given quarter. Netflix global ARPU increased a modest 6% YoY in Q1 2020, to $10.87. Interestingly, in the US & Canada region, the video streaming company generated an average of $13.09 in revenue per month from each paying subscriber. The 14.3% YoY increase in Netflix streaming ARPU from US & Canada was primarily due to the 5% YoY growth the average paying subscribers.
Netflix Streaming ARPU by Region: In-Depth
|Source||Netflix Quarterly Reports, SEC Filings|
|Note||Netflix fiscal year starts from January 1st|
The EMEA remained the second biggest market for Netflix as the average revenue per month per subscriber stood at $10.4 during Q1 2020. That’s nearly 1.66% YoY growth in Netflix streaming ARPU from EMEA region. However, on a quarterly basis, the company’s average monthly revenue from each EMEA customer declined 1.05% in Q1 2020.
It is important to note that the Asia-Pacific region is the fast-growing market for Netflix in terms of number of streaming subscribers added in a quarter/year. However, the scenario is completed different when it comes to ARPU. In Q1 2020, Netflix ARPU from APAC declined to an all-time low, primarily due to the low pricing of Netflix streaming content in the Asia-Pacific region. Netflix generated an average $8.94 in monthly revenue from each APAC customer during Q1 2020. That’s representing a notable 4.59% YoY and 1.43% QoQ decline. On the other hand, the highest-ever monthly revenue per user was generated from this region was $9.55 in Q1 2018.
Meanwhile, Netflix streaming ARPU from Latin America (LATAM) increased a 2.7% YoY in Q1 2020, to $8.05. However, the company recorded 1.59% decline in its average monthly revenue per customer when compared to the previous quarter. Surprisingly, in Q1 2019, the company witnessed a record 10.8% YoY decline in average monthly streaming revenue per Latin America subscriber, clocking $7.84.
About Netflix, Inc.
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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