Netflix now has over 125 million subscribers globally, having hit the figure in the first quarter of 2018. The company announced better-than-expected earnings, and shared the figure alongside the earnings release. The US is Netflix’s biggest individual market, with nearly 57 million of its subscribers – about 45 percent of its total subscriber base – in the company’s home market. Netflix also shared that it added 5.5 million subscribers globally and 2 million subscribers in the US during the period. Both of these figures were higher than earlier expected.
The company’s sole revenue model is subscriber fees. Netflix is a premium video-on-demand service, and charges subscribers a monthly fee to gain access to the Netflix catalog. While even the basic subscription package will give members access to the full catalog available in their country, higher packages enable better streaming resolutions (going up to ultra-HD) and multiple screen plans which would allow a single login to be used simultaneously on up to four screens. These higher plans are ideal for families, or if you intend to stream 4K content on a compatible TV.
On the whole, Netflix has reported a net profit of $290 million on a revenue of $3.7 billion, which is up about 40%. The company is not only in the business of offering streaming to its customers, but also produces a lot of original content which is available exclusively on its own platform. This enables Netflix to set itself apart from the competition, as customers are likely to sign up for the service knowing that they can only access certain content if they are subscribed to Netflix. The catalog of originals includes popular shows such as Narcos, House of Cards and Stranger Things, as well as originally produced movies such as Bright, Okja and Cloverfield Paradox.
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In India, Netflix hasn’t picked up as strongly as competing platforms such as Amazon Prime Video and Hotstar. This is primarily because of the high cost of the platform; Netflix is significantly more expensive than the competition. Additionally, competing platforms offer much more localized content, with a bigger catalog of Indian language shows or live sports streaming packages (in the case of Hotstar). While Netflix has been slowly building its catalog of Indian language content, it still primarily counts on its English-language content to serve as a differentiator.