Netflix's Streaming Business Further Exceeds Its DVD Revenues
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.