Now is the era of millennials. The so-called group of people is now dominating the population. With the advancement of technology, they changed a lot of traditional things. One of them is television. In the USA only, by 2018 there are 33% over 33 million people that cut the TV line. Netflix is one of the biggest factors.
How much Netflix earns?
The online streaming media service grows fast on subscribers. It grows by approximately 10% a year. And it records the number of 139 million subscribers by the beginning of 2019. Although the price of subscribing keeps on going up, people seem to be okay still.
But not just subscribers, Netflix experience a great increase of annual revenue. From just $1,4 billion in 2008, the number multiplies to $15,8 billion by 2018. It’s a massive growth within just ten years.
A threat to television networks
The high number of revenue goes in line with Netflix’s clever revolution. Netflix is one of the first companies using the internet as their service. Previously, people go to the theatre, rent DVDs or watch whatever’s up on the TV, with all of the advertisement breaks. Netflix breaks the scheme by giving choices to the viewers.
Netflix buys TV shows, series, dramas, and even movies that originated from TV stations. Then they put it on their platform. Viewers can just choose whatever they want to watch, whenever, wherever. Without being forced to watch bad advertisements.
Not just stopping there, Netflix tortured the traditional TV more by their original content. In 2018, they spent roughly $13 billion on production cost of original contents. The content differs from shows, series into movies.
Not just TV, theatres are threatened too
Even though it can’t put new releases movies on the platform, it still excels the big movies business. Netflix original content, Bird Box, for example. The movie was watched by more than 45 million subscribers in its first week. If the movie was put on the theatre, it must have easily beaten other movies playing at the same time.
However, Netflix is staggering. The amount of money they spent on production is a lot more than what they get from the subscribers. There are also content withdrawals from big companies such as Disney, Warner Bross, and NBC universals by the end of 2019. It’s a dangerous thing for Netflix as the contents from those three companies are on the most watched list.
According to Forbes, the company needs half of the planet to subscribe to be able to survive. Will it?