Suits Delivers a Blockbuster Verdict for Netflix’s Q3 Growth

Seven big questions re: Netflix:
1) How much revenue is Netflix generating?
2) How many streaming subscribers does Netflix have?
3) Where is the subscriber growth coming from?
4) How much revenue do they make from each streaming subscriber?
5) What share of new sign-ups comes from the ad-supported offering?
6) How much is Netflix charging for advertising?
7) What share of streaming viewership does Netflix account for?

Big question #1: How much revenue is Netflix generating?

Netflix revenue (YoY growth):
1) 2015-Q3 – $1.7B    
2) 2016-Q3 – $2.3B (↑ 32%)
3) 2017-Q3 – $3.0B (↑ 30%)
4) 2018-Q3 – $4.0B (↑ 34%)
5) 2019-Q3 – $5.2B (↑ 31%)
6) 2020-Q3 – $6.4B (↑ 23%)
7) 2021-Q3 – $7.5B (↑ 16%)
8) 2022-Q3 – $7.9B (↑ 6%)
9) 2023-Q3 – $8.5B (↑ 8%)

Big question #2: How many streaming subscribers does Netflix have?

Netflix subscribers (YoY growth):
1) 2015-Q3 – 69.2M    
2) 2016-Q3 – 86.7M (↑ 25%)
3) 2017-Q3 – 104.0M (↑ 20%)
4) 2018-Q3 – 130.4M (↑ 25%)
5) 2019-Q3 – 158.3M (↑ 21%)
6) 2020-Q3 – 195.2M (↑ 23%)
7) 2021-Q3 – 213.6M (↑ 9%)
8) 2022-Q3 – 223.1M (↑ 4%)
9) 2023-Q3 – 247.2M (↑ 11%)

Big question #3: Where is the subscriber growth coming from?

Netflix subscriber growth (% of total):
1) International – 7.0M (80%)
2) U.S./Canada – 1.8M (20%)
3) Total – 8.8M

Netflix subscribers (% of total):
1) International – 169.8M (69%)
2) U.S./Canada – 77.3M (31%)
3) Total – 247.2M

Big question #4: How much revenue do they make from each streaming subscriber?

Monthly ARPU for Netflix in the U.S./Canada (YoY growth):
1) 2019-Q3 – $13.08
2) 2020-Q3 – $13.40 (↑ 2%)
3) 2021-Q3 – $14.68 (↑ 10%)
4) 2022-Q3 – $16.37 (↑ 12%)
5) 2023-Q3 – $16.29 (↑ 0%)

Big question #5: What share of new sign-ups comes from the ad-supported offering?

Quick answer: ≈ 27%

Big question #6: How much is Netflix charging for advertising?

Quick answer: ≈ $50

Flashback: The Coming Netflix Ad Machine

Big question #7: What share of streaming viewership does Netflix account for?

Quick answer: Netflix accounts for 8% of total TV time and 21% of streaming TV time.

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