1. 1. THE NETFLIX TRENDS YOU MISSED Image source: Netflix. ?
2. 2. 2013 Q2 Q3 Q4 2014 Q2 Q3 Q4 2015 Q2 $0 $200 $400 $600 $800 $1,000 $1,200 NETFLIX DOMESTIC STREAMING TRENDS In millions of dollars Revenues Cost of revenues Marketing
3. 3. Domestic streaming sales rise smoothly. DOMESTIC REVENUE Q2 revenue of $1.03 billion was a 61% increase in 9 quarters.
4. 4. Even better, revenues are rising faster than costs. DOMESTIC COSTS During the same period, content costs only increased by 39%.
5. 5. SHOESTRING MARKETING BUDGETS Marketing costs rose by just 10%. In more than two years. That's peanuts.
6. 6. 2013 Q2 Q3 Q4 2014 Q2 Q3 Q4 2015 Q2 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 NETFLIX INTERNATIONAL STREAMING TRENDS In millions of dollars Revenues Cost of revenues Marketing
7. 7. Netflix more than tripled its international sales across these two-and-a-half years. SHIFTING FOCUS OVERSEAS Here, both content and marketing costs more than doubled.
8. 8. In the second quarter, Netflix spent $124 million on marketing abroad... MOVE THAT CAMPAIGN TO SPAIN! ...and $73 million in America.
9. 9. Netflix's international ad spending passed the domestic budget last fall. At these rates, it's kind of amazing that the U.S. market can grow as fast as it does. MAINLY IN THE PLAIN
10. 10. 2014 Q2 Q3 Q4 2015 Q2 0 10 20 30 40 50 60 70 NETFLIX OVERALL STREAMING TRENDS In millions of paid customers International members Domestic members Total paid members Coming soon to Netflix: Colombian drug drama Narcos.
11. 11. The heavy marketing pays off. SHIFTING FOCUS OVERSEAS Netflix spends 62% of its ad budget overseas, where it collects 60% of its total subscriber growth.
12. 12. Cable is dying. You don't want to miss out on these 3 companies that are positioned to benefit.