Image source: Netflix.
Netflix (NFLX +0.44%) has been able to establish itself as the dominant online video streamer during the past decade. The company is now synonymous with Internet TV, and has become a household name all around the world. That level of brand strength is hard to come by, and is also a testament to Netflix's ongoing success. Netflix's strong brand is what allows it to enjoy high levels of user loyalty while exercising pricing power through periodic modest price increases.
Of course, the key to Netflix's continued growth is its ability to attract and retain subscribers by offering a strong value proposition at its affordable price points. This comes in the form of an evolving library of existing video content in addition to an expanding portfolio of original content. The company is so confident, that it has long advertised a one-month free trial, with the vast majority of trial users promptly converting to paid memberships.
As of the most recent quarter, Netflix had a total of 69.2 million subscribers worldwide.
Here is a breakdown of Netflix's total subscriber base since the beginning if 2012.
|
Quarter |
Domestic |
International |
Total |
|---|---|---|---|
|
Q1'12 |
23.41 |
3.07 |
26.48 |
|
Q2'12 |
23.94 |
3.62 |
27.56 |
|
Q3'12 |
25.1 |
4.31 |
29.41 |
|
Q4'12 |
27.15 |
6.12 |
33.27 |
|
Q1'13 |
29.17 |
7.14 |
36.31 |
|
Q2'13 |
29.81 |
7.75 |
37.56 |
|
Q3'13 |
31.09 |
9.19 |
40.28 |
|
Q4'13 |
33.42 |
10.93 |
44.35 |
|
Q1'14 |
35.67 |
12.68 |
48.35 |
|
Q2'14 |
36.24 |
13.8 |
50.04 |
|
Q3'14 |
37.22 |
15.84 |
53.06 |
|
Q4'14 |
39.11 |
18.28 |
57.39 |
|
Q1'15 |
41.4 |
20.88 |
62.28 |
|
Q2'15 |
42.3 |
23.25 |
65.55 |
|
Q3'15 |
43.18 |
25.99 |
69.17 |
Source: SEC filings. Subscriber figures in millions.
The composition of Netflix's subscriber base is quite important, because the company is much more profitable domestically. It continues to invest in international expansion with localized content, but still has plenty of work to do abroad.
