Number of Netflix Subscribers in 2024: Growth, Revenue, and Usage

What is the number of Netflix’s subscribers in 2021?

Data from Netflix’s financial statements for the fourth quarter of 2020 shows over 203 million paying subscribers worldwide. The numbers are likely to increase further as first-quarter numbers of 2021 have yet to come in. The free trial was dropped during the COVID-19 pandemic in 2020 to minimize losses and expand its financial space to bring in more content (Newsweek, 2021).

Netflix is over two decades old. A pivot from their original DVD rental service launched a trailblazing Over-the-Top (OTT) streaming business that is constantly copied but has, so far, not been matched.

Netflix’s North American subscriber base is over 73 million (Netflix, 2021). The streaming giant managed to bring in 37 million new memberships in 2020 despite facing more competition. Thanks to its string of top-shelf programs like Queen’s Gambit and Emily in Paris, it received 8.2 million new subscribers in the fourth quarter of 2020 to bring its subscriber count to over 200 million, fending off competitors like Disney Plus and HBO Max.

This article explores Netflix’s number of subscribers, the OTT provider’s place as the leading streaming service worldwide, and will delve into the categories below:

Netflix Subscribers’ User Profile

Morning Consult, a Washington-based market research firm, teamed up with media outfit The Hollywood Reporter to identify the demographic information of the streaming company’s subscriber base. Members of Generation Z account for the largest share of Netflix subscribers with 70% of the age bracket having a paid subscription (Morning Consult, 2020). Millennials, on the other hand, make up the largest percentage of password sharers at 10%.

COVID-19 has raised the average weekly streaming minutes from 81.7 in 2019 to 142.5 in 2020 (Nielsen, 2020). The heaviest streamers are viewers belonging to the 35-54 age bracket as they made up 27% of the average weekly streaming minutes in 2020, followed closely by 55 and above (26%) and 25-34 (18%).

Netflix Subscribers: Geographic and Demographic Breakdown

Netflix is available in over 190 countries. The international expansion started in 2010 and was slow to pick up at the beginning but now includes countries such as Afghanistan, East Timor, and Greenland.

To date, the US has the highest subscriber count at 63.1 million. Rounding up the top five are Brazil, the UK, France, and Mexico.

There are three countries and one disputed territory where Netflix is unavailable: China, North Korea, Syria, and Crimea (Netflix, 2021). North Korea, Syria, and Crimea have US sanctions against them preventing Netflix from doing business in those countries.

The company is still working out options that will allow it to operate in China. However, it is not a total loss for Netflix: for now, its content is licensed to stream on local video streaming sites. Netflix opted out of operating in China due to stiff local competition and strict censorship restrictions. If Netflix can penetrate the China online video market—with an estimated market worth of $17.5 billion for 2020—they would be an even bigger OTT juggernaut.

The international market is where a big chunk of Netflix’s revenue comes from. The focus is on the Asia Pacific region, currently the smallest in the number of paid subscribers but has the biggest growth potential. The APAC region saw 9.2 million new subscribers in 2020, which represents a 65% increase from 2019. Similarly, revenues from the region grew by almost 62% (CNN, 2021)

Netflix Subscribers: Age and Gender Breakdown

Netflix’s core subscribers in the US are Gen-Xers and Millennials based on a study conducted by CivicSciences. The differences between age groups were larger in 2015 with 18-34 year-olds making up a huge share of Netflix subscribers while the 65 and over group were the smallest. The median age is now with the 35-44 age group in 2017 and beyond. Increases were also seen across the age groups of 34 to 65+ year-olds. The exceptions are the 18-24 year-olds and 25-34 year-olds with the former showing a steep decline to a third of its original—11% from 32%. The share of Gen Z viewers will have likely increased in the past year given that the latest available is four years old.

Similarly, the latest available gender-related statistics is a few years old. Women are more likely to be cable TV viewers than men according to the Pew Research Center (63% vs. 55%). In contrast, men are more likely to stream online content for entertainment (31% vs 25%). Netflix’s user base goes against this grain as it splits with a slight skew towards women at a 49:51 ratio.

Netflix penetration is highest among the Gen Z age bracket at 70%, followed by Millennials (65%), Gen X (54%), and Baby Boomers (39%) (Morning Consult, 2020).

Other Demographics: Income, Education, and Age

Netflix appeals to viewers with a broad range of educational backgrounds but those who went to college are more likely to have an online streaming service subscription. Roughly 1 in 3 people who are college-level educated or have college degrees are Netflix users.

The results for annual income show a correlation between higher subscription rates and higher income levels. Households with an annual income of less than $30,000 rely on traditional TV (Pew Research Center) for their news and entertainment while those earning a median income of $50,000 are more likely to have a Netflix subscription.

Netflix Subscribers’ User Behaviors

Netflix bases its recommendations on a global algorithm based on what its users watch, like, and rate regardless of where the subscribers are from. Age and gender offer helpful insights for marketing and forecasting revenue goldmines but when it comes to tastes and preferences, there is a global average with no huge differences in what subscribers watch, like, and rate.

Frequency of Online Streaming

OTT subscriptions in the US are high with Netflix as the preferred paid subscription service, Amazon Prime Video and Disney Plus are the closest competitors. YouTube is in a unique position as the leader for most video streams but is not considered actual competition. It relies on ads for revenue and not the paid subscription-based revenue model as Netflix, Amazon Prime, and Hulu does. Interestingly, during the second quarter of 2020, which was the start of the COVID-19 lockdowns, Netflix accounted for 34% of streaming minutes in US households compared to only 20% from YouTube (Nielsen, 2020).

It has been reported that as of 2020, Netflix subscribers have binge-watched over six billion hours of content per month (Comparitech, 2021). The average Netflix subscriber watches 3.2 hours of video per day, representing a 61% increase caused by the COVID-19 lockdowns. In fact, US subscribers have collectively viewed 204 million hours of content daily while on lockdown (Business of Apps, 2021).

Interestingly, Netflix made up 34% of all US streams as of the second quarter of 2020, completely dominating its competitors as its three closest rivals, Amazon Prime, Disney Plus, and Hulu, only accounted for 23% collectively (Nielsen, 2020).

The rise of Netflix and similar platforms has had such a huge impact they’ve affected the English language. Binge-watch was Collins English Dictionary’s 2015 word of the year (Collins Dictionary). The word entered pop-culture consciousness in 2013 when Netflix began releasing whole seasons of their shows in one go. The move is a strategic marketing genius, feeding the frenzy of “just-one-more-episode” and boosting streaming views.

According to Netflix, the following content are its top titles as of 2020 in terms of views. This list features both movies and series (thetab, 2020).

The next list comprises the most-streamed TV shows on Netflix for 2020 based on streamed minutes (Nielsen, 2021).

Device Insights: Netflix Subscribers’ Most Used

Going mobile has been the trend for the last decade with everything: websites, shopping, banking, gaming, and streaming—all optimized for a smartphone’s screen. Netflix can be viewed on mobile devices, PCs, and TVs. Subscribers can also sign up from the said devices.

Data from Netflix has shown that 85% of its content is streamed from a TV as of 2019 (Leichtman Research Group, 2019). But the latest data that charts the signups and viewership for all devices dates back to 2018.

Regardless of the device where the subscription was made, Netflix subscribers would eventually migrate from their handheld devices and computers to watch on their TVs.

Netflix’s Revenue and Subscription Model

As previously mentioned, Netflix has over 203 million paid subscribers worldwide. This translated to revenue of $6.64 billion as of the last quarter of 2020, registering a $1.18 billion increase from the previous year (Netflix, 2021).

Is Netflix Profitable?

Netflix is one of the highest-earning media services providers on the market right now and is considered a unicorn (a tech company with a valuation of over a billion dollars), but where does the money come from?

The Netflix business model is based on a monthly subscription. The business has three segments: domestic streaming, international streaming, and domestic DVD rentals. The first two generate revenue from monthly subscription fees to stream content. The subscription rates have three tiers: Basic, Standard, and Premium. The third segment was the original business model until the company pivoted to OTT streaming in 2007. Netflix DVD still had 2.15 million subscribers in the fourth quarter of 2019 but the company opted not to disclose the figure in 2020 (Netflix, 2020).

Although the company had not been profitable in the previous years, Netflix rebounded big time in 2020 with a lot of help from COVID-19. From a net income of $1,866,916 in 2019, the figure jumped to $2,761,395 at the end of 2020, thanks to a huge influx of new subscribers (Netflix, 2021).

Even more remarkable is Netflix’s positive cash flow at the end of 2020, which has never happened before. At the end of 2019, the company had net cash provided by operating activities of $2,887,322 but after just 12 months, it became $ 2,427,077 (Netflix, 2021).

Piracy and Password Sharing

In a 2020 survey, it was discovered that 54% of Netflix subscribers share their accounts with people from outside their households (Business of Apps, 2020). Netflix has traditionally turned a blind eye to password sharing. Competition from the OTT sphere and the possibility of Disney+ and other video streaming players cutting into its market share has Netflix rethinking its passive stance on password sharing.

Furthermore, a survey in 2019 revealed that there are 14% of US Netflix users who stream content using an account that someone else pays for. This is on top of 27% of users who stream using a subscription paid for someone in their household.

Lost Income From Password Sharing and Piracy

Netflix reports it loses $1.5 billion in potential income from password sharing. The losses could go higher with a Parks and Associates report placing the figure at $6.6 billion in losses from password sharing and piracy for the TV industry.

The problem is finding a balance between securing accounts of legitimate subscribers, weeding out the moochers, and avoiding alienating potential subscribers.

Subscription Rates per Region and Cost-Effectiveness

North America has generated paid subscription revenue of $3 billion, 45% of worldwide revenue (Business of Apps, 2021). US subscribers pay more, with Netflix generating an average of $13.51 per paying subscriber. The figure is significantly lower in other parts of the world, with Europe, Middle East, and Africa accounting for $11.05, Asia Pacific at $9.32, and Latin America at $7.12 (Netflix, 2021).

Turkey tops the list of most cost-effective places for a basic subscription. You pay $0.00055 for every content title available in a library with over 4,466 titles (Comparitech, 2021).

Top 10 Most Cost-Effective Countries for Basic Netflix Plans 2021

In contrast, Denmark only has 3,864 titles in its library which will end up costing the subscriber $0.00337 per piece of content.

Top 10 Least Cost-Effective Countries for Netflix Basic Plans 2021

Turkey has the cheapest subscription rate at $2.45 a month while Switzerland has the most expensive at $13.46.

Netflix and Other Over-the-Top Platforms

In the fourth quarter of 2020, Netflix enjoyed a market share of 34%, comfortably ahead of the competition (Antenna, 2021). However, due to the presence of more competitors, it was a decline of 6% from the last quarter of 2019’s 40%. Right behind it was Hulu and Disney Plus, recording 20% and 18%, respectively.

Many OTT subscribers have multiple accounts with different providers that make the total values go beyond 100%. The chart below shows a comparison of subscriber numbers of major players in the streaming industry.

Platforms: Players and Leaders

Apple TV and Disney+ joined the increasingly crowded OTT space in November 2019. Aggressive marketing and lower monthly subscription plans have propelled Apple TV and Disney+ with subscribers jumping ship from Netflix.

Disney+ has signed up more than 10 million subscribers a day after it launched on November 12. Industry analysts estimate Netflix lost 1 million subscribers who canceled their subscriptions after signing up for Disney+. Some good news for Netflix would be the fact Disney+ only offers a 7-day trial and a number of those 10 million who signed up will not convert to paid subscriptions afterward.

Apple TV has not released its subscription numbers yet. Although they offer the lowest subscription rate compared to other services, their content assets are limited—10 shows with about 10 episodes each.

Four other streaming services launched in 2020 giving Netflix even more competition.

1. HBO Max
2. Peacock
3. Discovery/BBC
4. AT&T TV

Streaming Service Content Assets

The content wars are only beginning. Disney has the combined content assets from Disney, Pixar, ABC, Marvel Studios, Lucasfilm, Touchstone Pictures, Fox, and 50% equity holdings in A&E, History Channel, and Lifetime. Even if Disney does not produce new content for the next five years, it still won’t run out of films and TV shows to stream.

Netflix’s Content Library

As of February 2021, Netflix USA has 5,415 titles in its library. The number will fluctuate in the coming months, content will be removed because licensing agreements have lapsed. Another reason for a diminishing library is competition—Disney+, NBCUniversal, and WarnerMedia having launched their own streaming services in 2020.

Original and Licensed Content

Netflix has raised an additional $2 billion in funding to beef up its content library with more original content. Netflix currently has a library of over 2,000 original content assets (What’s on Netflix, 2021). The new titles account for almost 35% of the entire library. Numerous as its library maybe, Netflix’s collection is dwarfed by Amazon Prime’s over 25,000 movies in its US market (Business of Apps, 2021).

Broken down by genre and show type, TV series make up two-thirds of the content assets. As for the leading genres as of February 2021, comedies make up 22.1% of movies while dramas account for 20.2% of TV shows (What’s on Netflix, 2021).

Netflix originals are a mix of genres and quality; some banking on star power, others on formulaic plots, and some on story-driven plots worthy of acclaim. These original assets have amassed a combined 480 nominations and 204 wins from various award-giving bodies.

Extraction is Netflix’s most viewed originally produced movie to date, garnering 99 million views; Bridgerton is the most-watched original series with 82 million views (CNet, 2021).

Predictions for Netflix’s Future Subscriber Growth

Netflix has experienced significant fluctuations in subscriber numbers in recent years, influenced by factors such as competition, content quality, and market saturation. Looking ahead, several trends may shape the platform’s subscriber growth:

• Continued Investment in Original Content: Netflix has committed substantial resources to producing original programming, which has successfully attracted and retained subscribers. As long as the platform delivers compelling content, it will likely maintain a steady subscriber base.
• Global Expansion Strategies: Netflix’s efforts to penetrate international markets are crucial for future growth. By tailoring content to local tastes and increasing availability in diverse regions, Netflix can attract new subscribers in emerging markets.
• Ad-Supported Subscription Model: Introducing a lower-priced ad-supported tier may help Netflix reach price-sensitive consumers. This model can attract new subscribers who may have hesitated to join due to cost.
• Competition from Other Streaming Services: As more platforms enter the market, Netflix must remain vigilant in providing unique content and user experiences. Its ability to adapt and innovate will play a significant role in maintaining subscriber growth.
• Shift in Viewing Habits: As audiences increasingly embrace binge-watching and on-demand content, Netflix’s strategy of releasing entire seasons at once may continue to resonate with viewers, encouraging long-term subscriptions.

Key Insights

• Global Reach: Netflix has a vast global presence, with over 203 million paying subscribers across more than 190 countries, highlighting its broad appeal and market penetration.
• Regional Distribution: The largest share of subscribers is in the US and Canada, followed by Europe, the Middle East, and Africa. The Asia Pacific region, though currently the smallest in terms of subscriber count, shows the highest growth potential.
• Subscriber Demographics: Generation Z constitutes the largest share of Netflix subscribers, with 70% having a paid subscription. Millennials are the most likely to share passwords, with 10% doing so.
• Content and Binge-Watching: Netflix’s strategic release of entire seasons at once has popularized binge-watching, significantly boosting viewing hours. Notable top shows include “The Office,” “Grey’s Anatomy,” and “Ozark.”
• Revenue and Profitability: Netflix’s revenue continues to grow, reaching $6.64 billion in Q4 2020, driven by increased subscription rates and new subscriber acquisitions. The company achieved positive cash flow in 2020, a significant milestone.
• Competition and Market Share: Netflix leads the OTT market with a 34% share of US streaming minutes. However, it faces stiff competition from platforms like Disney+, Hulu, and Amazon Prime.
• Subscription Cost Variability: Netflix’s subscription costs vary significantly by region, with the US having the highest average revenue per user. In contrast, Turkey offers the most cost-effective subscription plans.
• Piracy and Password Sharing: Account sharing is prevalent, with Netflix estimated to lose $1.5 billion annually due to password sharing, which could impact future growth and revenue.

FAQ

1. What is the current global subscriber count for Netflix? Netflix has over 203 million paying subscribers worldwide as of Q4 2020.
2. How has the COVID-19 pandemic impacted Netflix’s subscriber growth? The pandemic significantly boosted Netflix’s subscriber growth, with 37 million new memberships in 2020 alone, as people turned to streaming services during lockdowns.
3. Which region has the highest number of Netflix subscribers? The US and Canada have the highest number of Netflix subscribers, with over 73 million paying users.
4. What are the demographics of Netflix subscribers? Generation Z accounts for the largest share of subscribers, followed by Millennials. The median age of subscribers is now within the 35-44 age group.
5. How much revenue did Netflix generate in Q4 2020? Netflix generated $6.64 billion in revenue in Q4 2020.
6. What is Netflix’s market share in the OTT space? Netflix holds a 34% share of streaming minutes in the US, making it the leading OTT platform.
7. How does Netflix handle password sharing? While Netflix has traditionally ignored password sharing, increasing competition has prompted the company to reconsider its stance to protect its market share and revenue.
8. What are the most cost-effective regions for Netflix subscriptions? Turkey offers the most cost-effective Netflix subscription, with the lowest cost per title available in the library.
9. What are some of the most popular original shows and movies on Netflix? “Extraction” is the most viewed original movie with 99 million views, and “Bridgerton” is the most-watched original series with 82 million views.
10. How does Netflix’s content library compare to its competitors? Netflix’s content library includes over 5,415 titles in the US, with a substantial number of original content assets, although it is smaller than Amazon Prime’s library.

References: 

1. Spencer, S. (2021, January 19). Why Netflix no longer offers a free trial to new subscribers. Newsweek.
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7. Pew Research Center. (2017, September 13). 61% of young adults in U.S. watch mainly streaming TV. Pew Research Center.
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10. Collins Dictionary Language Blog. (2020, November 12). ‘Binge-watch’ – Collins word of the year 2015. Collins Dictionary.
11. Leichtman Research Group. (2019). Leichtman Research Group research notes. Leichtman Research Group.
12. Netflix. (2020, January). Netflix Q4 2019 financial statements. Netflix.
13. Carson, J. (2021, January 27). Antenna Q4 2020 streaming report. Medium.
14. Moore, K. (2021, January 1). Netflix library by the numbers 2020. What’s on Netflix.
15. Moore, K. (2021, February 9). What movie & TV genres perform well in the Netflix top 10s? What’s on Netflix.
16. Solsman, J.E. (2021, January 8). Bridgerton is Netflix’s most popular show yet (according to Netflix). CNET.

By Allan Jay

Allan Jay is FinancesOnline’s resident B2B expert with over a decade of experience in the SaaS space. He has worked with vendors primarily as a consultant in the UX analysis and design stages, lending to his reviews a strong user-centric angle. A management professional by training, he adds the business perspective to software development. He likes validating a product against workflows and business goals, two metrics, he believes, by which software is ultimately measured.