When we think of the streaming industry, we think of Netflix. And why shouldn’t we? The streaming giant is all but responsible for founding and sustaining an entire culture based on streaming traditional content online. It’s pushed the industry forward, forcing competitors to either adapt or get out of the way, and it’s forever changing the way that people watch TV and cut the cord — Netflix statistics prove that.
Television is still one of the primary vehicles for traditional advertising, but as Netflix chips away at traditional TV viewership, the model is changing. Though it used to be that to watch TV was to watch commercials, those days are gone. Netflix has changed expectations for viewers, for studios, and for networks, and there’s little reason to believe that it won’t continue to upend the traditional model as more and more people cut the cord in favor of entirely on-demand services and platforms.
Here are the top 10 Netflix statistics that marketers must know as the landscape of traditional advertising continues to shift and online streaming continues to boom.
Netflix owns Saturday nights. Though it lags behind other major networks (like ABC and NBC) most nights of the week, Netflix captures 26% of total viewership on Saturday nights, the highest of any network or platform. The next highest is CBS with 19%. Netflix’s share of viewership on Saturdays isn’t just the highest of the day, either — it’s the largest percentage of the week, with second place again going to CBS, which captures 24% of viewership on Mondays.
As of Q4 2016, Netflix had over 93 million subscribers. For context, in 2006, the year before it launched its streaming service, Netflix had somewhere in the neighborhood of 6 million subscribers. When the company pivoted from a DVD-by-mail rental service to include online streaming, it gave itself a new lease on life. Though the DVD-by-mail portion of the business is still around, Netflix is an undisputed streaming giant and the company that sets the tone and the pace for the entire streaming industry.
In total, over 47% of Netflix’s subscribers live outside of the United States. In fact, Netflix’s international growth is much more substantial than its domestic growth. In Q4 of 2016, Netflix added 5.12 million subscribers internationally, but just 1.93 domestically.
Netflix subscribers stream a lot. We know they binge. And sometimes, they even cheat. Point is, they’re spending a lot of time on Netflix (particularly, it seems, on Saturdays). But it all evens out, because they’re saving a ton of time by not watching commercials. More on that in a minute.
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That’s up 35% YoY. In Q4 alone, global streaming revenue grew to $2.4 billion, a total increase of 41% YoY. Netflix’s net income also saw some hefty gains, coming in at $67 million where Netflix had only forecast $56 million in net income.
Netflix’s original content is a huge part of Netflix’s brand and identity, and its offerings are growing all the time. Starting with well-known heavy-hitters like House of Cards and Orange is the New Black, Netflix has continuously branched out into new genres, adding notable series like Stranger Things, 3%, and The Crown in 2016. That slate’s going to continue to grow as Netflix plans to invest over $6 billion in its original programming in 2017, up from 5 billion in 2016.
It’s worth investing in that original content, too, as it seems to be driving a lot of the new subscriptions. In a survey conducted by Cowen and Company in 2016, 57% of subscribers surveyed said that it was Netflix’s original programming that got them take the plunge and subscribe.
Netflix’s original content is also a powerhouse critically and in popular culture. According to Google Trends, five of its shows were among the most-searched in 2016. Stranger Things took the top spot while Westworld came in at number two and Luke Cage took third. Also among those on the top list: Black Mirror, Fuller House, and The Crown which took 5th, 6th, and 7th place respectively.
One of the major selling points of Netflix is that it doesn’t have any commercials. But it’s difficult to know just how much of a difference that makes until someone bothers to do the math. Cordcutting.com crunched the numbers and found that Netflix is saving subscribers from about 160 hours worth of commercials on average each year. Plenty of time to watch more Netflix.
Though it’s sometimes struggled to meet projections and expectations, Netflix is currently alive and well. With its Q4 earnings report factored into the equation, Netflix’s current valuation is $60 billion. It’s seen some major growth in the back half of 2016, and expects to keep growing. Why should it? It may not have major networks beat on weekdays yet, but it’s inching its way closer as Netflix becomes more and more ubiquitous among traditional television viewers and cordcutters alike.