Netflix’s International Subscriber Base Expected To Enjoy Even More Solid Growth

With the number of subscribers growing solidly Netflix is not resting on its laurels and is planning on investing more funds in marketing and content. In its most recent reported quarter, the online video streaming giant added more than eight million subscribers bringing its total subscriber base to 117 million.

However there are signs that Netflix has hit maturity in the United States where domestic growth reached its peak five years ago. That said it is expected that Netflix will still achieve its target of between 60 million and 90 million subscribers in the world’s biggest economy. Currently the number of households in the United States is about 126 million and the figure is expected to increase by around one million annually. With Netflix’s current number of U.S. subscribers being 55 million, there is still ample room for growth.

Market exists

Estimates from Morningstar indicated that a total of 79 million households in the United States have signed on to Amazon Prime. Before the cord-cutting phenomenon started, there were over 100 million households which subscribed to satellite or cable television indicating that there is room for growth as long as subscribers continue to see value in online streaming services.

While Netflix is almost guaranteed to grow the number of subscribers in the United States to reach a figure of 60 million, the online streaming giant’s increased budget on marketing and content could see it net even more subscribers. With the average number of subscribers that Netflix has been signing up in the United States on an annual basis being five million, this means that in the next 5-10 years the total number of subscribers could reach between 80 and 90 million.

International subscriber base

Last year the domestic subscriber base of Netflix was surpassed by the international one which is also growing at a faster rate. In 2017 Netflix added more than 18 million international subscribers and the video streaming firm has indicated that the figure could accelerate in the current quarter.

Though it has been difficult to grow in Asia, Netflix has said that markets such as South America, Canada and Western Europe are already beginning to contribute solid profits. Since over 50% of the population in the world lives in Asia, Netflix will benefit immensely once its service starts to gain traction in the region. In Asia Netflix was unveiled less than three years ago. But unlike other U.S. internet firms which enjoy bigger user bases internationally compared to domestically one challenge for Netflix however is that most of its content is in English. And it’s not free.

Leave a Reply

Your email address will not be published. Required fields are marked *