Netflix Quarterly Marketing Expenses by Segment

The below graph represents Netflix quarterly marketing expenses by Domestic and International segments. The video streaming giant has significantly increased its marketing spending in the United States and other major markets to boost its streaming subscriber base.

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The above graph represents Netflix quarterly marketing expenses by segment, starting from fiscal Q1 2012 to Q4 2019. Netflix’s total marketing expenses in Q4 2019 amounted to $878.94 million, worldwide. The video streaming giant has significantly increased its marketing spending in the United States and other major markets to boost its streaming subscriber base. In Q4 2019, Netflix Domestic streaming and International streaming segments accounted for 43.19% and 56.81% of the total marketing expenses, respectively.

SourceNetflix Quarterly ReportsSEC Filings
Graph ID753
NoteNetflix fiscal year starts from January 1st

Domestic Streaming

Netflix US marketing expenses increased 21.38% YoY in Q4 2019, to a record $379.6 million. Currently, Netflix has 62.45 million streaming subscribers in the US.

In Q3 2016, the OTT giant had spent $116.7 million in its streaming content marketing in the United States, up from $74.8 million in Q3 2015. The figure has further increased to $210.6 million in Q3 2018.

Domestic DVD

Between Q4 2011 and Q4 2013, Netflix DVD marketing expenses in the United States declined from $1.49 million to $0.065 million. After that, the company had stopped spending on DVD marketing as the number of DVD subscribers had declined drastically during the period.

International Streaming

Netflix International marketing expenses jumped 19.6% YoY in Q4 2019, to $499.3 million. On a quarterly basis, the company recorded a strong 46% growth in its international marketing spending.

As the graph shows, in Q4 2014, Netflix poured $116.2 million on marketing activities outside the United States. In just three years, the company increased its spending to $255.47 million, in a bid to boost international subscriber base.

Note: For the Domestic and International streaming segments, marketing expenses consist primarily of advertising expenses and the payments made to Netflix’s affiliates and consumer electronics partners.

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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