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How Netflix Has Maintained Consistent International Growth

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Jan. 23 2019, Updated 7:30 a.m. ET

Netflix adds 7.3 billion international paid subscribers

Netflix (NFLX) added 7.3 billion paid subscribers outside the United States during last year’s fourth quarter, bringing its international paid subscriber count to 80.77 million. As the graph below shows, the company’s international subscriber base has grown consistently year-over-year. Meanwhile, its domestic subscriber growth has been slowing. 

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Netflix generates more revenue per user in the United States

Although US markets are much more lucrative for Netflix—the company made ~$34 per US user in revenue in the fourth quarter, compared with $26 per international user—its outstanding international growth has been a saving grace.

Netflix is drawing international subscribers with its quality foreign content

The company has been spending significantly to produce content in English as well as foreign languages, to attract international subscribers. During the holiday season, the company launched hit films Bird Box and Roma. The latter, a US-Mexican production, won critical acclaim. Also, Netflix has disclosed that its Spanish original series, Elite, has been viewed by 20 million member households, and the company is bullish about its business in India, where its original series, Sacred Games, has seen huge success.

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