Netflix’s ARPU by Region (2017-2021)

This statistic highlights Netflix’s ARPU by Region from 2017 onwards, split between the Asia Pacific (APAC), Europe, Middle East and Asia (EMEA), Latin America, and the United States & Canada.

Netflix’s ARPU by Region

The average revenue per user (ARPU) helps the management of the company as well as investors to analyze a company’s revenue generation capability and growth at the per-unit level. APRU is calculated as total revenue divided by the number of users or subscribers.

This article gives an analysis of Netflix’s quarterly ARPU by region. ARPU helps to measure how much money Netflix is generating per user. In Q1 2021, Netflix’s total ARPU increased by 6% year-over-year amounting to $42.91. This increase in revenue was primarily due to price changes and favorable fluctuations in foreign exchange rates.

Asia Pacific (APAC)

The Asia-Pacific region is the fast-growing market for Netflix in terms of the number of streaming subscribers added on a quarterly and yearly basis. In the Asia-Pacific region, Netflix generates the majority of revenue from India, Japan, Korea, Australia, and New Zealand due to successful local acquisitions and investment in original and regional content. Netflix generated an average of $9.71 in monthly revenue from each APAC customer during Q1 2021. It represents a notable 9% year-over-year growth and 6% Quarter-over-Quarter growth. 

Europe, Middle East, and Asia (EMEA)

In the EMEA region, Netflix earns a majority of revenue from countries like Germany, France, Italy, Spain, Turkey, Netherlands, Norway, and UAE. The EMEA region was the second biggest market for Netflix as the average revenue per month per subscriber stood at $11.56 during Q1 2021. That is approximately 11% year-over-year growth and 8% Quarter-over-Quarter growth in Netflix streaming ARPU from the EMEA region. 

Latin America

Latin America is the only region that has recorded a decrease in ARPU by 8% year-over-year from $8.05 in Q1 2020 to $7.39 in Q1 2021. This decline in revenue was primarily because Netflix’s subscription is more expensive than most of the other video-on-demand services platforms and also due to Covid-19 there has been a negative impact on the content delivery schedule.

The United States & Canada.

The United States & Canada are the major markets for Netflix which has generated almost 33% of total ARPU in Q1 2021. On average, Americans watch 90,672 minutes of Netflix and dedicates over 85 per cent of their viewing time to TV series. However, it’s the Canadians who are the biggest binge-watchers, watching almost 98,583 minutes of Netflix on average. In Q1 2021, the United States and Canada region has generated an average of $14.25 revenue per month from each paying subscriber. The 9% year-over-year growth and 7% quarter-over-quarter growth in this region was primarily due to the 4% year-over-year growth of the average paying subscribers.

Company Overview

Netflix, Inc is an American-based company established in August 1997 as a movie rental service that shipped DVDs to customers by mail. In 2007, Netflix introduced the streaming platform where members could watch content instantly online depending on their availability rather than catching it at a specific time when it airs. Marc Randolph and Reed Hastings are the co-founders of Netflix, Inc. Its headquarter is in Scotts Valley, California. Netflix, Inc completed its initial public offering in 2002, and its common stocks are traded on NASDAQ Global Select Market under the trading symbol “NFLX”. 

Netflix is an OTT platform that allows its subscribers to watch short films, movies, and television series including original content. It can be accessed worldwide except in China, Syria, and North Korea. At present, it has 207 million subscribers worldwide. Some of the major competitors of Netflix are Altice USA, ViacomCBS, NBCUniversal, DirecTV, YouTube, HBO (Home Box Office), TiVo, Hulu, Warner Media, Fox Сorporation, and The Walt Disney Company.

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