Netflix boosts marketing spend by 39% in second quarter of 2021

Campaign 21 Jul 2021 09:43

Netflix bolstered its marketing spend in the second quarter of 2021, to $604m (£443m) – the most it has spent on promotion in Q2 in the past few years and a figure eclipsed only by spend during the busy Christmas period.

The streaming service announced a 19% annual lift in revenue and a 36% jump in operating profit for its second quarter, led by significant growth in the Asia-Pacific region.

In the three months to June 30, revenue was $7.34bn, up 2.5% from $7.16bn in the prior quarter, and up 19% year on year. Operating income was $1.85bn, up 36% year on year.

Net income witnessed an even greater jump, up 88% to $1.35bn, from $720m the year prior.

Cost of revenues rose to $4.02bn in the quarter, up by 10% year on year, as Netflix spent more on marketing, technology and development, and administrative costs.

Technology and development costs rose 24% year on year to $537m—the company's highest quarterly spend in recent years.

General and administrative costs increased 21% to $335m. Regional breakdown Netflix said its Q2 revenue growth came from an 11% increase in average paid memberships, the majority of which came from APAC, and an 8% growth in average revenue per membership.

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