released its Q2 figures
yesterday and this chart is looking at one aspect of the announcement - the still growing profitability of the international streaming side of the business. The U.S. has always been the main source of the company's financial success, with the costs of getting established in other countries usually outweighing the revenues generated. In Q1 though, there was a big increase in the contribution margin of 'international streaming' and this increased again slightly over the last three months.
Moving from 8.7 percent in Q4 2017, in Q1 2018 the margin leaped up to 15.3 percent and now stands at 15.3 percent. As the chart also shows, this appears to be due to revenues outgrowing the cost of revenues (65 percent to 30 percent). Marketing is still a big part of Netflix's international expansion, and indeed, these costs grew more quickly than revenue, at 85.9 percent compared to Q2 2017.