Majority of Netflix Subscribers to be Outside US by 2018, IHS Markit Says
August 23 2016 - 6:20AM
Business Wire
Territory expansion pushes subscriber numbers towards 100
million mark
By 2018, the number of international Netflix subscribers will
overtake the number of US domestic subscribers, according to new
analysis released today by IHS Markit (Nasdaq: INFO), a world
leader in critical information, analytics and solutions.
“At the moment, Netflix has 79.9 million total paying
subscribers,” said Irina Kornilova, senior analyst at IHS
Technology. “By 2018, international subscribers will overtake the
number of subscribers in the US for the first time, and by 2020,
Netflix will have 75 million international subscribers.”
The total number of Netflix subscribers grew 30 percent between
2014 and 2015 and is forecast to grow 21 percent in 2016 as
territorial expansion reaches its peak, IHS Technology says. By
2018, Netflix will break the 100 million-subscriber mark. The
number of Netflix International paying subscribers will grow 38
percent in 2016, with more than 2.8 million of these new paying
subscribers coming from the new markets that Netflix launched in at
the beginning of this year.
By 2020, Netflix global revenues are expected to reach $13
billion, with 53 percent accounted for by Netflix International
markets. Domestic streaming revenues are expected to hit $6.2
billion by 2020, and international revenues to reach $7
billion.
Top subscribers
At the end of 2016, unsurprisingly, Western Europe, with strong
UK (over 6 million subscribers by the end of 2016), Netherlands and
Nordic (5.4 million subscribers combined) markets, will be the
leading region for Netflix outside the domestic US subscriber base,
the report said. Germany, despite strong competition from Amazon
Prime and free TV, is expected to reach 2.2 million paying
subscribers by the end of 2020.
Netflix plans for localised success
The ‘soon to be localised’ markets of Poland and Turkey will
drive further uptake in the Central Europe region, but the effect
of the localisation will not be felt immediately, IHS Technology
says.
“With the worldwide launch, Netflix has launched a platform upon
which it can build and differentiate the service to fit specifics
of every region in the future,” Kornilova said. “Netflix is
starting this localisation process in Poland and Turkey this year.
Subscribers in these countries can expect an addition of local
languages to the user interface, subtitles and dubbing of content.
This will help drive new subscriber numbers dramatically.”
Netflix will continue with localisation and development of new
territories through 2017 and 2018. As a result the new territories
are forecast to grow their paying membership base by 133 percent
and 62 percent in 2017 and 2018, respectively. By 2020, subscribers
in countries rolled out in 2016 will represent a quarter of all
international subscribers, reaching 19 million.
About IHS Markit
(www.ihsmarkit.com)
IHS Markit (Nasdaq: INFO) is a world leader in critical
information, analytics and solutions for the major industries and
markets that drive economies worldwide. The company delivers
next-generation information, analytics and solutions to customers
in business, finance and government, improving their operational
efficiency and providing deep insights that lead to well-informed,
confident decisions. IHS Markit has more than 50,000 key business
and government customers, including 85 percent of the Fortune
Global 500 and the world’s leading financial institutions.
Headquartered in London, IHS Markit is committed to sustainable,
profitable growth.
IHS Markit is a registered trademark of IHS Markit Ltd. All
other company and product names may be trademarks of their
respective owners © 2016 IHS Markit Ltd. All rights reserved.
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