Examining User Value in the Economics of Netflix: Viewing Hours per Subscriber

Examining User Value in the Economics of Netflix: Viewing Hours per Subscriber
McMahon, James. (2026). Notes on Cinema. 23 October. pp. 1-21. (Article - Magazine; English).

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Alternative Locations

https://notesoncinema.com/2026/10/23/examining-user-value-in-the-economics-of-netflix-viewing-hours-per-subscriber/

Abstract or Brief Description

This post extends from the first post about user value in the economics of Netflix (August 3, 2026). If you came to this post without reading the other one first, here is a snippet of what will be measured in a series of posts.

Our empirical investigation will test combinations of relationships between Netflix’s users and the firm’s financial performance. These tests will not only help us gauge the strength of these relationships. They also demonstrate that the availability of data matters. Imagining the ways user experience is good for Netflix’s financials is one thing; it is another thing for researchers, analysts, shareholders, and a curious public to actually have data to test theories of user experiences on the Netflix platform.

The are two types of variables: those that measure user characteristics (namely, the total number of subscribers, viewing hours per user and the global diversity of user consumption) and others that measure financial performance (market capitalization, net profit and revenues). Our approach will be to look at each user characteristic, explain the methodology, and produce correlations with each financial variable.

Language

English

Publication Type

Article - Magazine

Keywords

capitalization cinema Netflix power profit reading subscribers utility

Subject

BN Money & Finance
BN Business Enterprise
BN Capital & Accumulation
BN Culture
BN Data & Statistics
BN Industrial Organization

Depositing User

Jonathan Nitzan

Date Deposited

27 Oct 2026 16:37

Last Modified

27 Oct 2026 16:37

URL:

https://bnarchives.net/id/eprint/896

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