Why Youku potatoes qiyi, Netflix, you can not learn

Netflix was founded in 1997 and was originally an online DVD rental company known for its convenient and free delivery. Today, Netflix has amassed $12 billion 200 million worth of video content for paid users to watch online through a variety of terminals.


by 2009, Netflix subscribers will reach 10 million and can provide as many as 100 thousand DVD movies. In 2011, Netflix online movie sales accounted for 45% of online movie sales in the United states. By the end of 2015, Netflix had paid more than 70 million subscribers worldwide.

in May 2002, Netflix has been listed on the Nasdaq, the current market capitalization of more than $37 billion.

recently, the news of Netflix entering China has become more and more confidential. Youku potatoes, Iqiyi, Tencent video, music network, Netflix is opponent, is also an example.


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in 2007, Netflix began offering streaming media services. By the end of 2015, the service had about 70000000 paid members (distributed in 190 countries) and watched for up to 125 million hours a day.

Netflix will be the main business is divided into three segments to disclose: domestic (U.S.) streaming media, overseas streaming media, domestic DVD. In 2015, three business revenues were $4 billion 180 million, $1 billion 950 million and $646 million, totaling $6 billion 780 million.


the past four years, Netflix three business growth trend is quite different: domestic streaming media business and the cumulative growth of 91%, an average annual compound growth rate of 24%; streaming media business overseas cumulative growth of 578%, an average annual compound growth rate of 89%; while the domestic DVD business has fallen by 43%.

can be seen from the figure below, the domestic streaming media revenue share remained at around 62%, overseas streaming media revenue share of the incremental all from the domestic DVD business.


sees three of Netflix’s business from a profit perspective, but it’s a different picture:

domestic streaming media business profit growth is much higher than revenue, four cumulative increase of 293%, with an average annual compound growth rate of 57% (revenue CAGR of 24%).


overseas streaming business revenue growth is rapid, but still losing money. The good news is that the amount of money lost is not tied to revenue, and the revenues are double, while the amount of loss is under 300 million