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Netflix has further expanded its reach globally, making the service available everywhere in the world except China. Original content, which has helped the company become a video streaming destination, is likely driving its streaming revenues—which far exceed its DVD revenues.
According to Netflix, in Q1 2013, the company saw $639 million in revenue from its streaming services in the US. The rest of the world saw $142 million in revenue, and in total, Netflix made $781 million worldwide in streaming revenues.
During the same time frame, Netflix only made $243 million in DVD revenues. However, the DVD service is only available within the US.
Fast-forward to Q4 2015 and the company saw $1,106 in US streaming revenues and $566 million for the rest of the world. In total, Netflix made $1,672 million worldwide via its streaming business.
DVD revenues have declined since Q1 2013. In Q4 2015, Netflix made $151 million in DVD revenues.
The convenience of on-demand streaming programming is one of the main reasons that Netflix subscribers subscribe to the service. And 82% of US Netflix subscribers said just that in a January 2015 survey from Cowen and Company.
Additionally, more than two-thirds of respondents said that cost effectiveness was a reason they subscribed and 64% said it was because of the broad streaming content library, which includes movies and TV shows.
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