Netflix Q1 2017: International Picks Up The Slack

Netflix’s Q1 earnings this week revealed a company that is continuing to shape the video streaming market, with international becoming an increasingly central part of the story. With Netflix on course to pass the psychologically significant 100 million subscriber mark, the company’s Q1 2017 quarterly earnings are particularly significant. With 43.2% of the global SVOD market and a presence in 190 differing territories the only major piece missing from the picture is Netflix’s failure to launch in China, the largest and fastest growing market for digital services. While Netflix may be dwarfed by its Chinese competitors for user engagement (eg 500 million MAUs for Baidu’s iQYi) its paid subscription service is now twice the size of any of its competitors with 94.4 million of its 98.8 million members now paying as opposed to only 13 million paid subscribers for iQYi.

Nonetheless Netflix faces a whole set of challenges including continued slow US growth, the slowing of the scripted drama bubble and international competition. For more on our take on the earnings we have just published a research note on Netflix’s Q1 earnings that is immediately available to MIDiA Research video clients. If you are not a client and want to find out more about this research note and how to access MIDiA reports email Stephen@midiaresearch.com