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Graphic shows rise in Netflix paid subscribers and cash burn over past two years.
GN38715EN

BUSINESS

Netflix’s movie blitz boosts subscribers

By Duncan Mil

November 30, -0001 - Streaming giant Netflix ended 2018 with 139 million subscribers -- its best year for customer growth -- boosted by billions of dollars of investment in original films and series.

Netflix gained another 8.8 million paid subscribers -- 1.5m in the U.S. and 7.3m internationally -- during the fourth quarter of 2018.

The streamer has invested a massive amount in original content. The company reported a record $7.5 billion paid net on programming in 2018, up from an estimated $6 billion the year before.

Netflix spent more cash than it generated for the sixth straight year. Free cash flow nearly tripled in the October-December quarter from a year ago, from $523.8 million to $1.315 billion. Netflix burned through a staggering $15 million in cash per day.

In an earnings interview streamed on YouTube, Netflix chief content officer Ted Sarandos said that where content spending was concerned, there would be “more of the same, but on a continued larger scale.”

Netflix estimated that more than 80m households had viewed its Susanne Bier-directed film Bird Box in the first four weeks of streaming. Its Spanish series Elite has been seen by 20 million homes in its first four weeks, while 10 million households viewed UK co-production Bodyguard, Italian Baby and Turkish series The Protector in their first four weeks.

Full year revenue for 2018 was $15.79bn, up from $11.69bn for 2017.

Sources
PUBLISHED: 18/01/2019; STORY: Graphic News; PICTURES: Netflix
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