Netflix: Subscribers by Segment 2020
This article discusses Netflix: Subscribers by Segment 2020. Subscribers of Netflix, refer to the total number of users making regular payments across three segments namely, domestic DVD, domestic streaming and international streaming.
Importance of tracking subscribers by segment for Netflix
In early May of 2019, Netflix stock increased by 44% but took a plunge and ended with just a 21% increase in the end as the company was unable to meet subscriber estimates. Hence, as the number of subscribers do impact the stock prices, it is important to track them.
Subscribers by segment as a metric
A relatively higher subscriber would be a positive performance indicator for any segment.
Analysis of performance of Netflix based on subscribers by segment
The domestic DVD segment of Netflix has been facing a downtrend in its total subscribers since FY 2015. In Q2 FY 2019, there was a decline of 6.15% from the previous quarter. The highest decline over the same period, was of 6.38% from Q4 FY 2017 to Q1 FY 2018. The lowest fall was of 3.08% from Q3 FY 2015 to Q4.
About 62 million subscribers were roped in onto the domestic streaming platform during Q2 FY 2019. This is the largest number of subscribers in the segment over the past 4 years. In Q1 FY 2018, 56.705 million subscribers were on board. The maximum rise in subscribers was of 4.98% in Q1 FY 2016 from Q4 FY 2015. This rise reduced to 2.05% in Q1 FY 2019.
Netflix’s international streaming segment reported 95.94 million subscribers in Q2 FY 2019. While this was a 2.46% increase from the first quarter, it was a 31.85% increase from the second quarter of the previous year. This quarterly rise in Q2 FY 2019, was the lowest till date. The maximum increase in subscribers was of 13.04% from Q3 FY 2016 to Q4.
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