Netflix Is Headed To 18 Million International Subscribers Yet International Profits Remain Nonexistent

Despite the expected strong growth in the subscriber base, profit per subscriber will remain low due to significant content and marketing investments. The metric does not include allocated research & development expenses and general and administrative costs. We estimate that average profit per subscriber (contribution profit) for Netflix's international segment will total -$12.80 in 2014, as investments more than offset revenues. But the average profit per subscriber will grow to $30.00 by the e...