The State Of Netflix Business Model – Q2 2020

Netflix is a streaming company, which revenues come from subscriptions of its streaming services. By Q2 2020, Netflix counted over 193 million subscribers. And in the first months of 2020, it made almost twelve billion in revenues.

Breaking down Netflix, as of Q2 2020

With over two billion in operating income, and almost a billion and half in net income, througout the pandemic Netflix numbers grew substantially.

Paid accounts in the US and Canada went from over 66 million to almost 73 million paid accounts, by June 30, 2020. This represented a 9.6% growth. While Netflix penetration in mature markets like US and Canada is already high. A lot of growth has been contributed by paid accounts internetionally.

Perhaps, in Europe, Middle East and Africa, pad accounts went from over 44 million to over 61 million. An increase of 39% in the first six months of 2020, compared to the first six months of 2019.

The growth in Latin America was also more than double than the improved penetration in US and Canada. Paid subscriptions went from almost 28 million to over 36 million.

The largest growth was recorded in the Asia-Pacific region where Netflix saw an increase in accounts, from almost 13 million to over 22 million. Or a 73% increase.

The Netflix revenue model is straightforward. Subscriptions drive its growth. Comprised of almost 193 million paid accounts by June 30, 2020, Netflix is among the most successful subscription companies and among the most valuable brands:

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