Investors January 3, 2020 在线视频
Netflix Q4 2019 Earnings: Is Netflix Still Experiencing Growth?
With streaming services as popular as ever and new players emerging to fill the demand, the market is becoming increasingly competitive. Netflix was one of the first movers in this space however competition in both domestic and international markets continues to be a concern. We have explored the data behind the company’s digital performance ahead of Netflix’s Q4 2019 earnings call:
- Netflix Android app daily active users (DAUs) both domestically and internationally experienced a QOQ decrease in Q4 2019 (-1.4% and -2.6% respectively)
- YOY growth in Netflix Android app DAUs globally is declining
- Netflix’s primary markets all experienced a slowdown in YOY growth of DAUs in Q4 2019
SimilarWeb backtested Netflix’s Android app’s daily active users (DAUs) internationally against Netflix’s reported end of period international paid memberships – and discovered a strong correlation – R2 = 0.96.
在线视频Taking a closer look at Netflix’s Android app DAUs, in Q4 we see a decrease both domestically and internationally. International DAUs experienced a 2.6% QOQ decrease compared to a 2.8% QOQ growth in Q2, whilst domestic DAUs experienced a QOQ decrease of 1.4% in Q4.
在线视频Despite the QOQ decrease Netflix’s Android app’s global DAUs are continuing to grow YOY; however the rate of growth is slowing down dramatically. In Q4 2019 YOY growth in global DAUs was 13.5%, compared to 27% in Q3, and 59% in Q2.
What’s going on in key markets?
Focusing on the key markets for Netflix, US, Brazil, Mexico, India, and Argentina, all five experienced a slowdown in YOY growth of daily active users in Q4 2019. The most notable decline was in India, where due to wireless carriers significantly increasing their prices in recent months, the already competitive market for streaming services has come under increasing pressure on pricing. In Q4 2019 DAUs in India experienced a 3% YOY growth, a stark comparison to the YOY growth of 359% experienced in the region in Q1.
Want to know how Netflix is performing compared to competitors? Download the backing data to discover more.