Can Netflix Stabilize Its Faltering Operating Efficiency?
Revenue generated by Netflix per dollar spent on operating activities (marketing, advertising, rent, utility expenses, customer service etc.) declined notably between 2013 and 2015 due to higher spending on customer service and administrative activities in the wake of the company’s expanding reach. Going forward, however, we don’t expect the figure to fall further, as Netflix gains some leverage from its increasing subscriber base and keeps a firm control over its operating expenses.
Have more questions about Netflix? See the links below.
- What’s Netflix’s Revenue and EBITDA Breakdown Based On Expected 2016 Results?
- How Has Netflix’s Revenue Composition Changed In The Last Five Years?
- By What Percentage Did Netflix’s Revenue & EBITDA Grow In The Last 5 Years?
- Netflix: The Year 2015 In Review
- How Are Netflix’s Revenue & EBITDA Composition Expected To Change By 2020?
- When Will Netflix’s U.S. Subscriber Base Saturate?
- What Could Boost Netflix’s Stock By 40% Next Year?
- By What Percentage Can Netflix Grow Its Revenues If It Were To Launch A Free Ad-Supported Tier In The U.S.?
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Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Netflix
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