NetFlix 2011 Annual Report Download - page 29

in September 2011 and the UK and Ireland in January 2012. Until we reach our goal of global profitability, we
do not intend to launch additional international markets.
Year Ended December 31, Change
2011 2010 2011 vs. 2010
(in thousands, except percentages and average monthly
revenue per unique paying subscriber)
Revenues .......................................... $3,204,577 $2,162,625 48.2%
Domestic ...................................... 3,121,727 2,159,008 44.6%
International ................................... 82,850 3,617 2190.6%
Other domestic data:
Average number of unique paying subscribers ......... 21,977 14,744 49.1%
Average monthly revenue per unique paying
subscriber ................................... $ 11.84 $ 12.20 (3.0)%
The $1,042.0 million increase in our consolidated revenues was primarily due to the 44.6% growth in
domestic revenues with the increase in international revenues contributing to 7.6% of the increase year-over-
year. Domestic revenues increased $962.7 million as a result of the 49.1% growth in the domestic average
number of unique paying subscribers driven by new streaming subscriptions. This increase was offset in part by a
3.0% decline in domestic average monthly revenue per unique paying subscriber, resulting from the popularity of
the unlimited streaming subscription (introduced in November 2010) and a decline in the percentage of unique
paying subscribers electing both a streaming and a DVD subscription following the pricing changes in the second
half of 2011. During the year ended December 31, 2011, 73.6% of our new gross domestic unique subscribers
chose only an unlimited streaming plan which is priced at $7.99 per month and we expect that this percentage
will grow in future periods. At December 31, 2011, 88.9% of our total domestic unique subscribers had a
streaming subscription while less than half (11.1 million) had a DVD subscription.
International revenues increased by $79.2 million reflecting a full year of service offering in Canada as well
as our launch in Latin America and the Caribbean.
Year Ended December 31, Change
2010 2009 2010 vs. 2009
(in thousands, except percentages and average monthly
revenue per unique paying subscriber)
Revenues ........................................ $2,162,625 $1,670,269 29.5%
Domestic .................................... 2,159,008 1,670,269 29.3%
International .................................. 3,617 — 100.0%
Other domestic data:
Average number of unique paying subscribers ....... 14,744 10,464 40.9%
Average monthly revenue per unique paying
subscriber .................................. $ 12.20 $ 13.30 (8.3)%
The $492.4 million increase in our consolidated revenues was primarily a result of the 40.9% growth in the
domestic average number of unique paying subscribers arising from the continuous improvement to our customer
experience which in turn, drove consumer awareness of our service benefits. This increase was offset in part by
an 8.3% decline in the domestic average monthly revenue per unique paying subscriber, resulting from the
continued growth in our lower priced subscription plans. In the fourth quarter of 2010, when we introduced the
unlimited streaming plan, over one-third of new subscribers elected this option.
We expect the streaming subscription plans offered both domestically and internationally to continue to
grow as a percentage of our total subscriber base. We expect that as a result of the increase in subscriber
cancellations and migration of our subscribers towards streaming subscription plans and lower priced
DVD-by-mail subscription plans, offset by increases in international revenues, consolidated revenues will be
relatively flat in the first quarter of 2012 and will increase at a modest pace sequentially in future quarters.
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