Netflix's Cost of Goods Sold Over the Past Five Years
Netflix's Cost of Goods Sold for the Past Five Years
Netflix, Inc. is a good American technology and media company based in Los Gatos, California. The company's primary business is its subscription-based buffering service, which presents online streaming of a library of films and television set series, including those produced in-house.
The cost of goods sold (COGS) is a measure of the direct costs received by an organization in the production of its goods or services. For Netflix, COGS generally includes the costs of licensing content and the charges of producing the own original content.
The following table shows Netflix's COGS for the past five years:
| Year | COGS (USD millions) |
|---|---|
| 2022 | 17, 405 |
| 2021 | 15, 872 |
| 2020 | 13, 354 |
| 2019 | 11, 063 |
| 2018 | 9, 211 |
As the table shows, Netflix's COGS has enhanced significantly over the past five years. This is generally due to the increasing cost of licensing content and even the increasing purchase in original articles production.
In 2022, Netflix's COGS increased by means of 9. 8% for you to $17, 405 mil. This increase had been primarily due to the rising cost of licensing content, particularly from key studios such like Disney and Warner Bros. Netflix also continued to commit heavily in unique content production, using a number of high-profile releases throughout 2022, including " Stranger Things" period 4, " The Witcher" season 2, and " Bridgerton" season 2.
In 2021, Netflix's COGS elevated by 18. 7% to $15, 872 million. This boost was also generally due to the rising cost of licensing content plus the increasing investment decision in original content production. Netflix introduced a number of high-profile original movies and series inside 2021, including " Red Notice, " " The Crown" season 4, plus " Squid Online game. "
In 2020, Netflix's COGS increased by means of 20. 6% in order to $13, 354 million. This increase has been primarily due to be able to the increasing expense in original articles production. Netflix unveiled a number of high-profile original movies and series in 2020, including " Extraction, " " The Witcher" season 1, and " Bridgerton" season just one.
In 2019, Netflix's COGS increased by 19. 9% to $11, 063 million. This specific increase was generally due to the increasing cost of licensing content in addition to the increasing investment in original content material production. Netflix unveiled a number of high-profile original films and series inside 2019, including " Murder Mystery, " " The Crown" season 3, plus " Stranger Things" season 3.
In 2018, Netflix's COGS elevated by 18. 9% to $9, 211 million. This rise was primarily thanks to the growing cost of license content and the increasing investment within original content creation. Netflix released a number of high-profile original films plus series in 2018, including " Parrot Box, " " The Crown" season 2, and " Stranger Things" time 2.
Conclusion
Netflix's COGS has enhanced significantly over the past five years. This is primarily due to the increasing cost of licensing content plus the increasing purchase in original content production. Netflix is definitely expected to keep on to invest intensely in original content production in the coming years, because it competes using other streaming services such as Disney+, HBO Max, in addition to Amazon Prime Online video.