Netflix Breaks Down Average Cost Paid per User in New Report

Netflix's bookkeeping practices have been a thing of fascination in the entertainment industry for years now. The streaming service is notorious for keeping data about its spending, revenue and viewership numbers under lock and key - but today brings a little insight on at least one front. A new report breaks down the average monthly cost that Netflix users pay, both domestically in the US, and abroad. The data measures how fast Netflix is growing in overseas markets, as means of measuring how the streaming service will fare in 2020, when so many competitive serices (Disney+, HBO Max) make a hard push into the marketplace.

As it turns out, US Netflix users are paying the highest average monthly cost for streaming content. Check out the full chart for yourself, below (via Bloomberg):

Netflix US and International Average Monthly Cost Users
Netflix US and International Global Growth Rates
(Photo: Netflix)

Now some Netflix users in the US may see these charts and think there's some kind of unfair practice at work here - but really this is pretty standard, business-as-usual handling of pricing and profits. The simple fact is that Netflix's user base in the US is already firmly established and loyal, and some steady increases to monthly subscription costs in recent years (coupled with the proof that users won't run from said increases) is all the evidence that Netflix needs that it has locked down its established domestic customer base.

On the other side of that same coin, roping in a bigger international audience as Netflix customers requires a different set of incentives. If you've ever been overseas and used Netflix, then you already know the licensing and distribution terms for international markets is a whole different world. Things that we only wish would stream on Netflix in the US are offered in the international markets in timely manner - a big recent example being DC's Titans series, which is only available on DC Universe in the US; however, in international markets Titans is already available through Netflix. The same goes for Star Trek: Discovery, which US viewers can only get on CBS All Access streaming service, while International viewers get Star Trek: Discovery on Netflix.


Besides exclusive content offerings, lower monthly subscription costs are another major incentive to lure international viewers onto Netflix. Of course, depending on the average income rates of other countries, the international Netflix subscription costs could be on a similar ratio as the US ones - so again, nothing to get too up in arms about.

Finally, with all the other streaming services launching in 2020, Netflix may soon have to bring those US costs down!