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Insights for Entrepreneurs

A Perfect Guide to Knowing Everything About Netflix Statistics and Its Business Model

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Glory Simmons

Insights for Entrepreneurs · 10 min read

netflix statistics

10 min read

Netflix, a global streaming platform, has become an unavoidable entertaining tool in all of our lives. Netflix statistics say that 7 out of 10 people have the Netflix app on their mobiles. The growth and popularity of this on-demand streaming app is very astounding.

Apart from watching on-demand videos from the application, have you ever thought about Netflix, its origin, its success factors, and other crucial aspects of the application? If you are an aspiring entrepreneur, you need to study more about popular applications in detail.

This understanding will guide your career, you will be able to launch an app like Netflix in the future and even you can become Netflix’s biggest competitor one day. Let us dig into the history of Netflix and get to know more about this world’s popular streaming app.

When was Netflix founded? History & Journey

Starting with its origin, Netflix was founded in the year 1997 by Reed Hastings and Marc Randolph. Initially, they decided to offer DVD- by mail service.

  • 1998: Netflix’s online platform was launched. Within a few minutes after the launch, the platform got crashed due to heavy traffic.
  • 1999: the platform gained around 239000 subscribers as stated by Netflix statistics and expanded to 3100 titles which were 900 in the previous year. Netflix’s user count started seeing an unbelievable increase year by year.
  • 2001: After much struggle, Reed Hastings managed to maintain the platform effectively. As a result, Netflix reached 1 million subscribers.
  • 2002: Netflix was declared as a public company and the company was valued as a $309 million revenue-worth company. At that time, Reed was holding 500000 shares while Marc was holding 166000 shares.
  • 2003-2010: Marc left the company by selling his shares. The company gained 6.3 million subscribers. Netflix started streaming content and delivered them to TVs, mobiles, Tablets, and other devices.
  • 2011: this year the company faced its downfall when it divided its streaming business and DVD rental business. During that year more than 800,000 subscribers abandoned Netflix.
  • 2012: this was the year of the comeback for Netflix as the platform started making original shows. Later, as mentioned in Netflix statistics, the company produced more than 1900 original shows and was listed as the best streaming service for original content.
  • 2013-2017: Netflix goes global as the platform was made available in more than 130 countries and has included local languages in the subtitles section. By the end of 2017, the platform has officially reached 100 million subscribers.
  • 2021: this year, the company was at its peak by reaching 209 million subscribers and covering around 190 countries, almost all parts of the world. The platform had 15000 titles and reached an annual revenue of $25 billion.
  • 2022: again, the company faced the downside with the loss of 200000 subscribers in its first quarter. Many customer retaining measures were taken like cracking down on password-sharing and introducing ad-supported plans with less pricing.

Although the company has faced all ups and downs throughout its journey, still it stands in the market as the best on-demand streaming platform among its audience.

Netflix statistics

Hope you have gone through the two-decade journey of Netflix. Before building an app like Netflix, you should be prepared to confront all market competitions, customers’ changing preferences, pricing, and many more.

We need to know some interesting facts about Netflix and what are all the platform has achieved and made its operation to be unique among its competitors. For this, we need to view the Netflix statistics under users, usage, and country-wise numbers.

Netflix users’ statistics (Source: Netflix, Statista)

The below-mentioned chart includes Netflix DVD users’ counts and also Netflix subscriber counts.

YearUsers’ count
2001400,000
2002796,000
20054.02 million
201018.26 million
201570.83 million
2020203 million
2021209.18 million
2023232.5 million

Netflix Usage statistics (Source: Statista, Comparitech)

  • Netflix subscribers spend more than 3.2 hours each day on average consuming video content on the platform.
  • While considering the global video viewing time, Netflix is responsible for 8% of the overall timing.
  • More than 100 million subscribers are sharing their accounts with their households.
  • Female subscribers are higher on Netflix with 51%.
  • 41% of users use the platform without paying and by sharing passwords.
  • In the US alone there are more than 30 million daily users out of which 23% are adults.
    Netflix users by country
  • As per Netflix statistics, the US and Canada hold the maximum number of Netflix subscribers’ count with 35% share, which is around 73.95 million paid subscribers.
  • In Europe, the Middle East, and Africa, the company holds more than 68.6 million subscribers with 32.84%.
  • In this row, next comes Asia with 27.87 million subscribers with 13.32% of global Netflix users.

Who is Netflix’s biggest competitor?

When you decide to build an app like Netflix, the first thing you need to know is about its competitors and how Netflix is facing fierce competition in the market. Here we have analyzed the top three Netflix biggest competitors who are being considered as Netflix alternatives by users.

Amazon Prime Video

Amazon Prime Video is one of the unbeatable Netflix’s biggest competitors. The company has an extensive scale of operations in more than 22 countries. The company has touched a gross revenue of $25.21 billion in 2022 with 200 million subscribers.

Amazon prime video is device compatible and available to view on smart TVs, game consoles, smartphones, and many more. it offers a 4K viewing experience to users, offline videos, and parental controls on the content of the platform.

YouTube TV

YouTube TV is another of the toughest and Netflix’s biggest competitors in the video streaming industry. The platform has reached a revenue of $19.8 billion with 3 million paid subscribers. This live television streaming service is operated by the leading global on-demand video-sharing and social media platform, YouTube.

The service is available in the US and it is compatible with devices like smartphones, tablets, smart TVs, Roku, and Apple TVs. The platform offers unlimited DVR features and users can download their favorite shows and store them for 9 months. It also has an extensive library of huge on-demand video content for users to watch and serves around 65 countries.

Disney+

Disney+ is one of the reasonable Netflix alternatives that have a huge fan base. The platform earned $17 million in 2022. Disney+ platform has impressive thousands of audiences through its exclusive features and has gained more than 116 million subscribers.

The platform serves more than 53 countries. As Netflix rules with audiences who are above 18, Disney+ targets children aged 3-17 and also their families through its excellent video content. Disney+ has a unique feature called Group Watch that will let users watch their favorite videos or shows along with their friends who are staying remote.

How is Netflix making money?

With proper market analysis and customers’ preference understanding, Netflix managed to make money either with or without Ads. This is quite amazing for any aspiring entrepreneur as the key goal of any business would be making a profit. Netflix statistics have clearly stated that the company was able to make revenue of more than $ 25 billion annually. Let us identify its revenue streams in detail.

Subscription-based model

Netflix completely follows a subscription-based revenue model and has succeeded well with this revenue strategy. Subscribed users are allowed to choose any of the subscriptions VOD plans. According to the plan, Netflix features vary and users can be specific about what they want and can choose wisely. Let us get into the subscription VOD plans available with Netflix.

Basic plan

This is a budget-friendly plan that starts from $8.99/ month. Users are allowed to stream any on-demand video content on one screen at a time on any of the users’ devices that is compatible with Netflix. All videos provided through this plan come with HD definition video quality.

Standard plan

Unlike the basic plan, this plan allows users to stream video content on two devices at a time for $13.99/ month. Videos will be of 1080P resolution in HD quality. Along with streaming, users are also allowed to download their favorite movies or shows on two devices at a time.

Premium plan

This plan is mainly for users who do not compensate for video quality. The plan comes with 4K Ultra HD videos and costs $17.99/ month. Users who have subscribed to this plan can watch videos on 4 devices simultaneously.

This is all about a subscription-based revenue model that supports the platform to earn well from several subscribers who choose various subscription VOD plans.

Partnering with movie producers

Netflix collaborates with various movie producers, writers, music composers, and animators to build partnerships with them. With the help of this partnership, the platform offers domestic streaming and international streaming to users that vary in pricing.

Domestic streaming – Netflix is a US-based streaming platform. As per the US subscribers’ preference, the platform offers videos. If the user prefers to watch a movie that is available for US households, they can take a domestic streaming plan.

International streaming – This plan is also for US subscribers alone. Users who wish to watch streaming content produced from outside of the US can take this plan. This is also a good source of revenue generation for Netflix.

Netflix’s key success factors

With all challenges and struggles, Netflix was able to survive in the market and also maintained its top position among its audiences. Many factors have driven the company toward success. Let us get into those key factors that supported the platform to success.

netflix statistics

Excellent user experience

People show interest to watch video content on OTT platforms mainly for better convenience and great user experience. Netflix has never failed to impress its users through its engaging UI and UX.

Some of the user experience-enhancing features of Netflix

  • Sharing Netflix accounts with friends and households.
  • A download option is provided that will let users watch videos offline.
  • Custom-created preview videos will get played automatically while scrolling down the screen.
  • 30-day free subscription.

Unlimited videos

A wide range of movies, TV shows, web series, documentaries, and many performances are offered with the platform. Users can get access to unlimited videos and can download any number of videos on their devices to watch them offline.

Original content

Users can be assured about the legality of the platform. All contents are either original production or the platform will own the copyrights of the content. There will not be any legal issues in using the platform and downloading the videos. As per Netflix statistics, the platform has invested more than $12 billion in 2020 on its original content which is more than its competitors like Disney+, Amazon Prime video, etc.

No-ads content

The most annoying thing for any user who uses any streaming platform is its ads intrusion. Users may lose their cool as they cannot watch their favorite series without ads. This will affect their viewing experience. Due to this, ad-blocking software is getting popular online as many users use them to avoid ads. Understanding this user’s preference, Netflix offers ad-free content to its premium users.

Binge watching feature

Netflix always analyses users’ viewing preferences and habits. Users always can’t wait for the next episode that will air on the TV after a week. By understanding this urge, Netflix has started Binge watching feature, where the platform will upload the entire web series at once and allows users to watch them at a stretch.

Netflix recommendation engine

This is one of Netflix’s key success factors that will comfort users by recommending videos that suits their interest. Through a machine learning algorithm, the platform will know what movies or genres we watch often. It will search for related movies or shows and will recommend them to users. This will help users to decide what to watch next without searching more.

Conclusion

With overwhelming features, Netflix has been a successful video streaming platform all these years. Now we too know more about its features, keys to success, and its entire business journey. If we implement unique strategies, we can easily build an OTT platform like Netflix.
Are you interested to develop an app like Netflix, share it with our team.

We, Appkodes, will design and develop a perfect customer-centric and business-focused mobile application that can easily escalate your business to the next level. Get connected with us and book your free demo.

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ABOUT THE AUTHOR

Author

Glory is a creative content writer whose writing has a deep connection with users and can provide SEO-friendly tech-driven content. Being a freelance content writer, all her writings meet the demands of any online business, solopreneur, start-up, and brand.