Does anyone here know anything about how NFLX's segment revenue is calculated in its annual report? They report their paid subscribers and their average monthly revenue per paying membership, which leads to quite an intuitive calculation for their revenue, which is the AMRPPM x 12 x Their end of period paid subscribers. But when I check with their reported revenue, they don't
match each other. Any ideas folks on WSO? Many thanks!
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They grow so some people join during the year and don’t pay 12 months. Math works out: if you divide 2018 revenue by 12 and by 11.40 you end up at around 55/56 paid members which is about 50% of net new joiners added to 2017 base number.
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