Netflix has spent over $30 billion on content since 2014 - over a third of it in the last year alone
Netflix investors were less than pleased with the streaming platform's subscriber growth - the company's stock-driving metric, given its subscriber-based business model - when it released its Q2 earnings results on Monday.
In the three months ending June 30, Netflix said it added 5.15 million subscribers, bringing the total domestic and international subscriber count to 130.1 million subscribers, which was about a million shy of its targeted 131.2 for the quarter. Its stock responded with a 14% tumble to $344.04 in after-hours trading. The difference in subscribers may seem marginal, but for Netflix - which is unique to traditional networks in that it relies on subscribers' payments instead of advertising dollars to fund content - growing its monthly payments matters.
As this chart from Statista shows, the streaming platform has spent nearly $30 billion on streaming content since the beginning of 2014, with over a third of that sum being spent in the last 12 months alone. It owes $4.5 billion in content expenses by June 2019 and $3.6 billion towards the end of next year.
Shayanne Gal/Business Insider
NOW WATCH: A diehard Mac user switches to PC
- Antonia Wade, PwC's global CMO, tells Insider how B2B spending changes in tough economic times
- Ban on single-use plastic kicks in across India as the country recognises the choking impacts of plastic waste on the environment
- Bank FDs will draw down from mutual funds if interest rates go up to 7.5-8%, says report
- Best smartphones under ₹40,000 in India
- Are we worse off than we were in 2008? Foreign investors seem to think so