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    Netflix's International Expansion Picks up Steam

    Netflix's International Expansion Picks up Steam

    Netflix's International Expansion Picks up Steam
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    By Statista   IST (Updated)

    Netflix released its prediction-beating Q1 figures yesterday and this chart is looking at one interesting aspect of the announcement - the growing profitability of the international streaming side of the business. The U.S. has always been the main source of the company's financial success, with the costs of getting established in other countries usually outweighing the revenues generated. In Q1 though, there was a big increase in the contribution margin of 'international streaming'.
    Moving from 8.7 percent in Q4 2017, in Q1 2018 the margin leaped up to 15.3 percent. As the chart also shows, this appears to be due to revenues significantly outgrowing the cost of revenues (70 percent to 49 percent). Marketing is still a big part of Netflix's international expansion, but these costs also grew more slowly than revenue, at 60.8 percent compared to Q1 2017.
    This story was first published on Statista.
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