How does Netflix Make Money?

Netflix is a popular video streaming and video rental entertainment service. Did you know, Netflix has over 183 million users in 190 countries? Yes!!! People are enjoying TV series and feature films on various devices. Netflix provides on-demand services to its customers. It means customers get what they request. Netflix is available around the world.

History of Netflix

Netflix was founded by popular serial entrepreneurs – Marc Randolph and Reed Hastings on 29th August of 1997 in Scotts Valley, California. These two entrepreneurs have established a strong name in the market. With consistent effort and dedication, Netflix has grown as the leading internet entertainment provider.

Initially, Netflix was introduced to the market as the movie rental provider. People purchase their favourite movies on Netflix and get DVDs through post. The rental information was communicated through email. In those days, Netflix gave high competition to rental stores.

How does Netflix make money?

“Subscription” is the primary source of income for Netflix. The video streaming platform is generating better revenue through subscriptions. Over millions of users pay to access the content available on Netflix.

Netflix offers three types of subscription plans. The basic plan starts at $8.99 per month. The standard plan starts at $12.99 per month and a premium plan starts at $15.99 per month. According to the analysis, subscribers across the globe are paying 182.8 million per quarter to Netflix. People around the world are streaming videos, music and other content on the move. Netflix has earned a great reputation in the market by offering one-month free-trial memberships. The video streaming service is offering the best bandwidth compared to other video streaming platforms such as YouTube, Amazon and more.

  • Basic – Subscribers can watch video and stream movies in “Standard Definition”.
  • Standard – Subscribers can stream content in content in “High Definition”.
  • Premium –  Customers can enjoy streaming in “Ultra High Definition”.

Netflix subscription plan may vary from one country to another.

Unlike other streaming platforms, Netflix doesn’t sell advertising space on its site. Also, it doesn’t sell subscribers’ personal information to third parties. The only source of income for Netflix is its “Subscriptions”. Netflix’s business segments are categorized into three services. It includes domestic streaming, international streaming and domestic DVD.

According to the analysis, Netflix has over 167.1 million subscribers across the world. Of these, over 61 million Netflix accounts were subscribed to in the United States. Other, 106.1 million are registered around the globe.

Domestic streaming

Domestic streaming various subscription plans to their customers within the US (United States). As per the analysis, Netflix’s organization generated great profits in the past year. Netflix has led to over 61 million subscriptions by the end of 2019. As per Netflix reports, the domestic streaming service has generated 45.8% revenue.

International streaming

International streaming has more subscribers than domestic streaming. The international streaming account to generate maximum revenue for Netflix. There are over 106 million subscribers available on international streaming at the end of 2019. It means international streaming has generated over $10.6 billion.

Domestic DVD

Netflix has a DVD subscription plan. The standard plan allows you to rent 1 disc at a time and the premier plan will let you rent two discs. Netflix’s original DVD is one of the effective services that still continues. As per Netflix reports, domestic DVD’s generated $300 million of revenue. Though it’s the smallest category, Netflix is earning 1.5% of revenue through this.

Advantages of Netflix

If you’ve not yet created a Netflix account, you’re wasting your time and money on less quality streaming apps. Netflix is a trusted application, subscribe and get a one-month free trial. It is the best way to check Netflix services, quality, plans and more. Browse unlimited videos and other content anywhere and at any time. Decide whether you want to pay for a Netflix account or not. As there are multiple benefits with Netflix accounts, you’ll end-up subscribing to premium plans.

Following are the key advantages of creating a Netflix account:

Easy-to-use – Creating and managing the Netflix account is not rocket science. Subscribing to Netflix is simple and easy. You don’t need to download the other software to use Netflix. All you need to do is open Netflix’s official website and start watching your favourite content on your mobile device or tablet. You can download the Netflix application on your device and watch movies, films and tv shows on the go. Browse the content according to name or genres.

No interruption – Subscribers can enjoy watching their favourite content without interruption. You don’t need to worry about irritating commercial ads between the movies. Simply put, Netflix is commercial-free. Pick the film or show, no commercial ads will run while playing the movie or tv show.

Watch offline – Netflix users can watch the movies and download them. These downloaded movies are saved in the account, users can watch the movies offline during free time. Yes, you’ve heard it right. This could be the best option available for Netflix users. If you’re planning to go for a vacation, there might be a poor internet connection, you cannot stream the movie. Download the movie from Netflix and play a movie offline.


Netflix is considered synonymous with streaming and video platforms. The service has to revolutionize the new way users stream videos, play music, watch movies and tv shows. A few decades ago, people watched movies and shows through a cable network. Thanks to the latest technology!!! Netflix has regarded as a powerful video streaming app. Also, people can watch their favourite content anywhere at any time. The million-dollar question for people is – How does Netflix make money? The answer is straightforward. There are over 183 million subscribers across the globe. Netflix is earning millions of dollars through subscription. The video streaming platform is offering three types of subscription plans such as basic, standard and premium. Also, Netflix is earning money through domestic streaming, international streaming and DVD service. On the other hand, it is offering a one-month free trial. The free trial allows users to browse their favourite videos without hassles.
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