Netflix has rocketed to the top of Apple’s list of ‘Highest Grossing’ App Store apps in the USA, marking a first for the streaming giant.
After a couple of single-day stints in second position over the last two months, Netflix has finally landed itself first place on the list of App Store apps that generate the most money. By comparison, Netflix was the seventh highest-grossing iOS app in the US for November – so this is a major leap.
There are two key moments that are likely to have prompted this rise to glory for Netflix. The first was the addition of in-app subscriptions that was introduced last autumn, allowing users to pay for their membership through the Netflix app. According to analysts at Sensor Tower, Netflix’s weekly net revenue has grown from below $50,000 to nearly $2.9 million since the change.
But what probably nudged Netflix into the top spot was the introduction of offline viewing last week. The new feature allows users to download content to watch without an internet connection – a long-request feature that was already offered by major rivals like Amazon Video. This new feature may have been enough to prompt even more users to pick up a Netflix subscription, thus propelling Netflix into first place.
It’s also worth noting that the figures don’t simply rely on day-to-day sign-ups. If a user subscribes to Netflix through the iPhone apps, all of their monthly payments will count towards the tracked revenue.
But these aren’t the only reasons why Netflix has seen such a steady revenue growth. The company has been heavily investing in original content, which has allowed Netflix to create an impressive base of exclusive TV shows and movies that draw customers away from rival services. Netflix is also planning to push into unscripted programming too, with 20 such shows expected to debut next year.
Netflix has also been increasing its pricing over time, too. For instance, the monthly cost of the HD subscription increased from $7.99 to $9.99 for new subscribers in April 2014. And existing customers grandfathered on the old price were shifted onto the higher pricing tier in May this year – unless they opted to downgrade their package to standard definition instead.
However, the price hike hasn’t hampered the company’s success. After a global rollout in January 2016, Netflix’s latest figures put the total subscriber base at over 86 million users worldwide – 47 million of which are in the USA.
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Watch: What you need to know about Netflix Offline Viewing
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Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.
Professional conduct
We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.
