Netflix has posted a strong 2019 driven by its Q4 performance and high sales in EMEA last year.
Despite rising competition, Netflix’s latest earnings report has revealed the company generated more than $20bn in annual revenue in 2019. It is the first time that Netflix crossed the $20bn-milestone.
Netflix ended its fourth quarter with a revenue of $5.47bn as well as 167.1m total paying subscribers, up from 139.3m in the same period a year earlier. The operational cost went up by 2.6bn.
Growth in EMEA continued steadily during the year with subscription numbers at the year-end of 51.78m out of a global total of 167.9m.
During the fourth quarter, Netflix’s global paid net additions totalled 8.8m, the same as in 2018. Net income soared, from $134m in Q4 2018 to $587m for this quarter.
Netflix has also shifted from being a buyer of Hollywood films and TV shows to becoming a major content producer. Netflix has outspent most of its rivals. The company had planned to invest $15bn on content in 2019. That amount will grow to $35 billion by 2025, according to Pivotal Research Group.
Netflix’s budget for original content is expected to reach nearly $19bn this year, compared to $8.5bn for Amazon Studios, $6bn for Apple TV Plus and $2.5bn for Disney Plus.
The company recently led all studios in Oscar nominations with 24 nods, thanks to films such as The Irishman and Marriage Story. In fact, Netflix claimed that The Witcher is on track to become “our biggest season one TV series ever,” with 76m member households choosing to watch the show. It also said 83m households chose to watch the Michael Bay-directed action film 6 Underground.