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 in addition to media company headquartered in Los Gatos, California. The company's primary business is usually its subscription-based internet streaming 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 new measure of the direct costs sustained by a company in the creation of its goods or services. For Netflix, COGS mostly includes the costs of licensing content material and the costs of producing their own original content material.
The following table programs 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 primarily due to the increasing cost of licensing content plus the increasing investment decision in original articles production.
In 2022, Netflix's COGS increased by 9. 8% in order to $17, 405 million. This increase seemed to be primarily due for you to the rising cost of licensing content, particularly from major studios such like Disney and Warner Bros. Netflix also continued to commit heavily in initial content production, using a number of high-profile releases throughout 2022, including " Stranger Things" time 4, " The Witcher" season two, and " Bridgerton" season 2.
In 2021, Netflix's COGS elevated by 18. 7% to $15, 872 million. This raise was also mainly due to the rising cost of licensing content and the increasing expense in original information production. Netflix unveiled a number of high-profile original movies and series inside of 2021, including " Red Notice, " " The Crown" season 4, plus " Squid Video game. "
In 2020, Netflix's COGS increased simply by 20. 6% to $13, 354 mil. This increase seemed to be primarily due in order to the increasing investment decision in original information production. Netflix introduced a number of high-profile original movies and series inside 2020, including " Extraction, " " The Witcher" season 1, and " Bridgerton" season 1.
In 2019, Netflix's COGS increased by 18. 9% to $11, 063 million. This increase was mainly due to the increasing cost of licensing content plus the increasing investment decision in original articles production. Netflix unveiled a number of high-profile original movies and series within 2019, including " Murder Mystery, " " The Crown" season 3, and even " Stranger Things" season 3.
In 2018, Netflix's COGS elevated by 18. 9% to $9, 211 million. This boost was primarily thanks to the raising cost of guard licensing and training content and the increasing investment throughout original content manufacturing. Netflix released some sort of number of high-profile original films and even series in 2018, including " Bird Box, " " The Crown" time 2, and " Stranger Things" season 2.
Conclusion
Netflix's COGS has elevated significantly over the past five years. This is mainly due to the increasing cost of licensing content and the increasing purchase in original content production. Netflix will be expected to continue to invest intensely in original written content production in the coming years, while it competes along with other streaming providers such as Disney+, HBO Max, in addition to Amazon Prime Video.