Thursday, 19 January 2017

Netflix has 89m paying subscribers; 47% are outside the US

"In Q4, global streaming revenue grew 41% year over year to $2.4 billion, while contribution profit rose 74% year over year to $470 million (20% margin). Operating profit totaled $154 million (6.2%
operating margin) against guidance of $125 million, while net income amounted to $67 million,
compared with our forecast of $56 million. Net income included a -$22 million foreign exchange
adjustment booked in other expense due to the strength of the US dollar. As a reminder, the quarterly
guidance we provide is our actual internal forecast at the time we report.
We added 7.05 million net new members globally in the quarter, against our forecast of 5.20 million
and last year's Q4 performance of 5.59 million. This was the largest quarter of net additions in our
history and was driven by strong acquisition trends in both our US and International segments.
Domestically, we added 1.93 million members in the quarter, exceeding our forecast of 1.45 million
and 1.56 million in the year-ago quarter. Combined with 15% ASP growth, revenue increased 27%
year-over -year to $1.4 billion. US contribution margin expanded 395 basis points year-over-year to
38.2%. Margin improvement was greater than expected due primarily to higher-than-forecast
revenue and the timing of content deals.
International membership grew by 5.12 million in Q4, against a forecast of 3.75 million and 4.04
million in the year-ago quarter. Over 47% of our total members are now outside of the US. This
growth was very broad based geographically as our original content continues to be well-received all
over the world. ASP for the international segment rose 13% year over year (excluding a -$21 million
impact from currency). International contribution loss was -$67 million, compared with our forecast of -$75 million, as content spend was slightly lower than expected owing primarily to timing."
Source:  Netflix' Q4 2016 earnings letter to shareholders, 18th January 2017

Wednesday, 18 January 2017

There are more than 100m paid subscriptions to music streaming services

"In streaming’s earlier years, when doubts prevailed across the artist, songwriter and label communities, one of the arguments put forward by enthusiasts was that when streaming reached scale everything would make sense. When asked what ‘scale’ meant, the common reply was ‘100 million subscribers’. In December, the streaming market finally hit and passed that milestone, notching up 100.4 million subscribers by the stroke of midnight on the 31st December. It was an impressive end to an impressive year for streaming, but does it mark a change in the music industry, a fundamental change in the way in which streaming works for the music industry’s numerous stakeholders?"
Note - this is 'subscriptions' not 'subscribers' - one person could subscribe to multiple services, so the total number of paying subscribers will be below 10m

Monday, 16 January 2017

WeChat has 768m daily users; 50% use if for more than 90 minutes a day

Source:  Blog post from WeChat, 29th December 2016

Chinese brands account for more than half of smartphone sales in India

"Chinese mobile phone brands are booming in India, for the first time ever making up more than half – 51 percent – of new devices in the world’s second largest smartphone market.
Meanwhile, Indian brands dropped below 20 percent market share of shipments in November, according to Counterpoint Research, plummeting from 40 percent in early 2016.
Local brands have been facing increasingly stiff competition from Chinese brands that are affordable.
Counterpoint research analyst Karn Chauhan says most Chinese brands are in the US$75-200 price segment. As per market share data for the September quarter, Xiaomi has pushed out local players and now dominates this segment, along with Samsung. Those budget phones have seen a growth of over 45 percent in the past year.
The biggest gainers were China’s Vivo and Gionee, making mid-range – US$250-450 – phones, a segment that soared by over 150 percent."

Time spent with mobile apps rose 69% in 2016

Source:  Report from Flurry, 12th January 2017
Data is global

Growth in mobile app usage by category in 2016

Source:  Report from Flurry, 12th January 2017
Note - 'Personalisation apps' include ones that crate backgrounds, ringtones etc
Data is global

14,500 Western brands have stores on Alibaba's Tmall

"The demand for overseas goods continues to drive cross-border e-commerce in China and, as a result, further growth for Tmall Global.
The B2C shopping site, which provides Chinese consumers with a direct sales channel to overseas retailers, saw the total number of international brands on the platform skyrocket 169 percent to 14,500 in 2016 from 5,400 last year. The number of product categories soared 85 percent to 3,700 from 2,000 over the same period."

More than 2m people stayed in an Airbnb over New Year 2016-7

Wednesday, 11 January 2017

Amazon shipped more than a billion items during the Christmas shopping period 2016

"According to a new Reuters report by Mark Maketa, Amazon shipped more than one billion items worldwide this holiday season, nine times more than during last year's holiday season… “its best ever.” The Echo home assistant, and its smaller version Echo Dot, topped the best-sellers list, said Jeff Wilke, chief executive of Amazon's worldwide consumer division, in a press release.
Amazon likely sold between 4 million and 5 million devices this year to date, with Alexa, the voice-controlled assistant on the Echo, estimated Morningstar analyst R.J. Hottovy, says the report. Shoppers can command the Echo to perform a host of tasks, from playing music to turning on Christmas lights."

Apple paid more than £20bn to app developers in 2016

"Apple customers’ App Store spending jumped 40 per cent in 2016 — fuelled by games such as Pok√©mon Go and Super Mario Run — to provide a much-needed boost to services revenues, at a time when iPhone growth remains sluggish.
Payments to app developers, after Apple took its cut, rose to more than $20bn last year, the company said on Thursday, with growth accelerating in China.
“2016 was a record-shattering year for the App Store,” said Phil Schiller, Apple’s senior vice-president of worldwide marketing."
Source:  FT, 5th January 2016

Monday, 9 January 2017

Ed Sheeran's new songs set records with over 6m streams each in the first 24 hours

"Reaching over a combined 13 million global streams in the first 24 hours, with "Shape Of You" amounting 6,868,642 and "Castle On The Hill" accumulating 6,168,395, Ed has now overtaken the previous 'day one' record holders, One Direction, who notched up 4,759,698 streams with "Drag Me Down" in August 2015, marking another record-breaking milestone in his career. "

14 billion WhatsApp messages were sent exchanged India on on New Year's Eve

"Fourteen billion Whatsapp messages were exchanged in India on New Year’s Eve, making it an all-time high from the country, the firm said on Friday.
Not just that, 32 percent of those messages were in the form of some sort of media: Whatsapp’s 160 million monthly active Indian users sent 3.1 billion images, 700 million GIFs, and 610 million videos.
Facebook-owned Whatsapp has made SMS in India all but redundant. Farmers to school students to businessmen use the service to communicate. Many in India use the English script to communicate in various Indian languages, so language is no barrier. Whatsapp also has local language support in the country."
Source:  Tech in Asia, 6th January 2017