Netflix is the world’s leading streaming media provider, with over 86.8 million members in over 190 countries enjoying more than 126 million hours of TV shows and movies per day (numbers for December 2017).
Netflix provides instant access to TV shows and movies for an affordable monthly fee. It accepts payment through credit card, debit card, PayPal, Apple Pay, Google Wallet, gift card, or promotional code.
Netflix delivers content to users using software that recognizes what movie or show they last watched (based on metadata) then automatically resumes at the last point of content being watched. Netflix is the most popular streaming service on the web today.
Netflix (NASDAQ: NFLX)
Netflix has been spending a lot of money on content, spending billions in the process. However, despite competition getting tougher and streaming markets are becoming more and more competitive, Netflix’s expenditure has resulted in substantial subscriber growth. As a result, Netflix’s ARPUs are also among the highest among its main competitors, with $14.68 in the US and Canada, $11.65 in Europe, the Middle East and Africa, $9.6 in the Asia Pacific, and $7.86 in Latin America (data from Q3). This, combined with Netflix’s ongoing membership growth, has resulted in rising profits over recent years even as content investment increased.
Netflix reported a quarterly net income of $1.45 billion and a TTM net income of $5 billion (in Q3) which follows more than a decade of break-even/near-breakeven operations.