I came across something while researching my post for yesterday which just HAD to be shared - How House of Cards lent Netflix a magical financial touch.
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Short answer: Dropped their CAC by 62% & generated an ROI of over 1,070%
For simplicity's sake, let's limit the impact to just 3 months.
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HOC added over 3Mn subscribers in less than 2 months of launch (continues to add as of today).
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At their current LTV per user of $350 per user (discounted), that’s a value of over a billion $ added in just 2 months.
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ROI of 1,050% or 10.5x!
Let’s assume again that the entire $100Mn was used for that first season alone (In reality, it was for 2 seasons – again, for simplicity).
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Assuming a budget of $100Mn, the CAC was under $35 considering 3Mn new users signed on.
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Netflix’s CAC is $90 per user.
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Which means that it dropped its CAC by 62% using better content.
#saas #metrics #CAC #saasmetrics #ott #platforms #content #media #analytics #technology #data #startups #bigdata
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