![]() Netflix has resisted price cuts, so even in low-income India it charges users $8.70 a month. The equivalent British household spends less than $45. ![]() The average American cable subscriber shells out nearly $100 a month, so those who “cut the cord” can afford half a dozen streaming services. Most foreigners are poorer, and even the rich ones don’t spend much on TV. Already nine in ten new subscribers live abroad (see chart 1). ![]() By 2025 the share is expected to reach two-thirds. Last year, for the first time, Netflix earned more than half its revenues outside America and Canada. The bulk of the growth, though, will come from overseas. Further price hikes could lift Netflix’s domestic revenues by 7% annually for the next few years, says MoffettNathanson. And yet fewer members quit Netflix a month than ditch other streamers, according to Antenna, a data firm. It makes $14.88 monthly from each, more than double the takings of Disney+, its main rival, reckons MoffettNathanson, a firm of analysts. Despite the stagnating number of American subscribers, Netflix has scope to charge them more. Netflix’s third season promises exotic new locations and, perhaps, a big plot twist. Now, as rich markets mature and rivals snap at its heels, growth must come from elsewhere. Its second, stunning act was to invent and dominate subscription video-streaming. The company began by renting DVDs by mail. It still raises a difficult long-term question for Netflix. Many new members from 2020 pulled forward subscriptions they would have bought this year. Netflix’s share price, which soared by nearly 50% in the first half of 2020, has barely risen in the past year (and dropped by 3% on July 21st). In America and Canada, where the market is saturated and competitors are multiplying, the total number of subscribers declined by 430,000. On July 20th it announced 1.5m new sign-ups between April and June, 85% fewer than a year ago. Now, as the world’s economies reopen, Netflix is sputtering.
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