2018 Will Be Netflix's Best Year Yet; Headed for 201M Subs by '23
Netflix's growth, especially outside the United States, has been so robust that some analysts had to change their outlooks. “These forecasts are a lot higher than the last edition of this report," says Simon Murray, principle analyst at Digital TV Research, of his Netflix Forecasts report. "Similar to many other analysts, we underestimated the fast take-up in international markets.”
That fast take-up suggests Netflix will have its strongest year ever in 2018 as it adds 28 million subscribers. Its growth should slow after that, Digital TV Research believes.
By the end of 2023, look for the SVOD leader to count 201 million subscribers around the world. That's up from 111 million at the end of 2017. By the end of 2023, North America and Western Europe will make up 62 percent of Netflix's customer base. That's down from the 76 percent they made up in 2017 thanks to surging demand in other countries. For example, look for the Asia Pacific region to make up 14 percent of Netflix's base by the end of 2023.
"Netflix expanded to 130 more countries (notably excluding China) in January 2016 to bring its total to 190 countries." says Simon Murray, principle analyst at Digital TV Research. "The 130 new countries will have 40 million subs combined by 2023, quintuple the 8 million at end-2017. The 2023 figure corresponds to 20 percent of Netflix’s global total; up from only 7 percent in 2017."
As for revenue, look for it to grow from $11.3 billion in 2017 to $28.8 billion by the end of 2023. Of that, $11.2 billion will come from the U.S.
With its logo program, Netflix hopes to make the technical side of uploading finished movies a little less confusing for storytellers.
The SVOD leader is diving deeper into interactive storytelling, this time partnering with Telltale Games for a series based on the popular video game.
The leading SVOD has become the first global network, and detractors accuse it of making creative decisions based on algorithms. It doesn't, but here's the real reason it's winning.
Mobile viewers can now sample Netflix programs through previews using a vertical interface designed for smaller screens.
The subscription video leader's global strategy is paying off, as Netflix now has more non-U.S. subscribers than U.S. subscribers. But is this strategy sustainable?
Netflix shares its secrets for encoding Dolby Vision and HDR10, as well as the technical requirements for shooting and editing Netflix video titles