Netflix: 3 years of numbers filed to stop investor dominos falling
What happened: Netflix has filed three years of data covering subscribers and revenue numbers, proving the service has worldwide growth.
Why it matters: Aren’t Decembers meant to be full of cheer? Apparently not for Netflix. Their festivities have been ruined by investor doom and gloom. It began when a top Wall Street analyst knocked over a first domino by downgrading the tech giant’s stock. Since then, there have been other analysts riding on the coattail, amping up the fear-mongering.
The bigger picture
These fearmongers seem to have forgotten there is an entire world outside of the United States. Consumers like us don’t need to pay attention to the bigger picture, yet investors do, and that’s good news for Netflix.
With all the doom and gloom, Netflix decided to build a house of bricks around their remaining dominos. It comes in the form of three years of revenue and subscription figures. The numbers are eye-opening, and paint a picture rubbishing the illusion of a company in trouble.
What the numbers show
This is what we learned from the numbers, which run from the first quarter of 2017, and end in the third quarter of 2019:
- In 2018 revenue from North America reached $8.3 billion, from the first three-quarters of 2019 revenue is at $7.4 billion.
- Since 2017, subscriber numbers in North America have increased from 58 million to 67 million.
- Latin America has earned the company $2 billion since 2017.
- In the Asia-Pacific region, Netflix has 15 million subscribers, with revenue climbing 229% since 2017.
- Europe, the Middle East, and Africa saw a 140% increase in subscribers and a 196% increase in revenue.
- Netflix has 158 million global subscribers.
- 90% of the companies growth is coming from outside of the United States.
Only in the United States
Here’s the catch: the fear comes from a prediction about 2020. The Wall Street analyst predicts Netflix will lose four million subscribers from its U.S. audience. There is a 54% chance the analyst is right based on previous forecasts. Yet, up to the third quarter, Netflix is still gaining subscribers, albeit a small amount. Only twice since 2011 has Netflix lost subscribers over the previous quarter. Check out the graph below to see more.
Regardless of the filed numbers by Netflix, the service is the only one risking it all for our subscription dollars. In this analyst’s opinion, Netflix is the one service everyone should stay loyal to, because it is a disruptive force in what was a stale entertainment industry.