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Netflix’s international expansion finally paying off

Statista on Netflix

With its decision to have Netflix everywhere, the company is now seeing the fruits of that expansion in this 1st quarter (Q1) of 2017 with a $43m contribution profit as shown by Statista in the chart above. Netflix’s definition of contribution = Revenues – (Cost of revenues + Marketing expenses)

Profits in its more mature international markets were more than its newer international markets, but hopes that in this year they all make record profits. There is a hurdle to expansion however:

Perhaps the biggest challenge in operating at a global scale is managing content licenses for so many different markets. With this in mind, Netflix’s original content will play a huge role in determining the company’s future success and profitability. While licensing deals have to be negotiated individually for each market, Netflix can roll out its own content to a global audience without facing substantial additional costs. – Statista

Regarding subscribers here are the numbers around the US and internationally as of Q1 of 2017:

Netflix subscribers