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Business Revenues Theme 3 Microeconomics
Netflix's annual revenue from 2002 to 2017
(in $ million)
150.8 270.4 500.6 682.2
996.7 1,205.3 1,364.7
1,670.3
2,162.6
3,204.6
3,609.3
4,374.56
5,504.66
6,779.51
8,830.67
11,692.71
0
2000
4000
6000
8000
10000
12000
14000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
RevenueinmillionU.S.dollars
Net revenue of Amazon from 1st quarter 2007 to
2nd quarter 2018 (in billion U.S. dollars)
0
10
20
30
40
50
60
70
Q1
'07
Q3
'07
Q1
'08
Q3
'08
Q1
'09
Q3
'09
Q1
'10
Q3
'10
Q1
'11
Q3
'11
Q1
'12
Q3
'12
Q1
'13
Q3
'13
Q1
'14
Q3
'14
Q1
'15
Q3
'15
Q1
'16
Q3
'16
Q1
'17
Q3
'17
Q1
'18
RevenueinbillionU.S.dollars
Share of Apple's revenue by product category
from the first quarter 2012 to third quarter 2018
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
1Q
'12
2Q
'12
3Q
'12
4Q
'12
1Q
'13
2Q
'13
3Q
'13
4Q
'13
1Q
'14
2Q
'14
3Q
'14
4Q
'14
1Q
'15
2Q
'15
3Q
'15
4Q
'15
1Q
'16
2Q
'16
3Q
'16
4Q
'16
1Q
'17
2Q
'17
3Q
'17
4Q
'17
1Q
'18
2Q
'18
3Q
'18
Shareofrevenue
iPhone* iPad* Mac* Services** Other Products***
Publisher sales revenue of physical books in
the United Kingdom 2009 to 2017 (£ million)
3,072
3,172
3,030 3,039
2,870
2,736 2,756
2,976
3,118
0
500
1000
1500
2000
2500
3000
3500
2009 2010 2011 2012 2013 2014 2015 2016 2017
RevenueinmillionGBP
Film industry revenue in the United Kingdom
from 1998 to 2016, by platform (in £ million)
0
1000
2000
3000
4000
5000
6000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
RevenueinmillionGBP
Theatrical Rental video (physical) Retail video (physical) Film on TV* Film on VoD and nVoD
Leading low cost airlines worldwide in 2017,
based on revenue (in billion U.S. dollars)
21.2
8.4
7
6.4
4.1
3.8
3.7
3.5
3
3.1
0 5 10 15 20 25
Southwest Airlines
Ryanair
JetBlue Airways
EasyJet
Thomas Cook Group
Norwegian
IndiGo
WestJet
Gol
Eurowings*
Revenue in billion U.S. dollars

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Business revenues

  • 1. Business Revenues Theme 3 Microeconomics
  • 2. Netflix's annual revenue from 2002 to 2017 (in $ million) 150.8 270.4 500.6 682.2 996.7 1,205.3 1,364.7 1,670.3 2,162.6 3,204.6 3,609.3 4,374.56 5,504.66 6,779.51 8,830.67 11,692.71 0 2000 4000 6000 8000 10000 12000 14000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 RevenueinmillionU.S.dollars
  • 3. Net revenue of Amazon from 1st quarter 2007 to 2nd quarter 2018 (in billion U.S. dollars) 0 10 20 30 40 50 60 70 Q1 '07 Q3 '07 Q1 '08 Q3 '08 Q1 '09 Q3 '09 Q1 '10 Q3 '10 Q1 '11 Q3 '11 Q1 '12 Q3 '12 Q1 '13 Q3 '13 Q1 '14 Q3 '14 Q1 '15 Q3 '15 Q1 '16 Q3 '16 Q1 '17 Q3 '17 Q1 '18 RevenueinbillionU.S.dollars
  • 4. Share of Apple's revenue by product category from the first quarter 2012 to third quarter 2018 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q '14 3Q '14 4Q '14 1Q '15 2Q '15 3Q '15 4Q '15 1Q '16 2Q '16 3Q '16 4Q '16 1Q '17 2Q '17 3Q '17 4Q '17 1Q '18 2Q '18 3Q '18 Shareofrevenue iPhone* iPad* Mac* Services** Other Products***
  • 5. Publisher sales revenue of physical books in the United Kingdom 2009 to 2017 (£ million) 3,072 3,172 3,030 3,039 2,870 2,736 2,756 2,976 3,118 0 500 1000 1500 2000 2500 3000 3500 2009 2010 2011 2012 2013 2014 2015 2016 2017 RevenueinmillionGBP
  • 6. Film industry revenue in the United Kingdom from 1998 to 2016, by platform (in £ million) 0 1000 2000 3000 4000 5000 6000 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 RevenueinmillionGBP Theatrical Rental video (physical) Retail video (physical) Film on TV* Film on VoD and nVoD
  • 7. Leading low cost airlines worldwide in 2017, based on revenue (in billion U.S. dollars) 21.2 8.4 7 6.4 4.1 3.8 3.7 3.5 3 3.1 0 5 10 15 20 25 Southwest Airlines Ryanair JetBlue Airways EasyJet Thomas Cook Group Norwegian IndiGo WestJet Gol Eurowings* Revenue in billion U.S. dollars

Editor's Notes

  1. Revenue is the income a firm generates from selling goods and services. In some cases shown below, businesses have been able to scale quickly and achieve rapid growth in their sales revenue. Netflix is a superb example or sales revenue growth that has a classic ‘ice-hockey stick’ appearance. Founded on August 29, 1997 in Scotts Valley, California Netflix originally started as a small DVD-by-mail service in the USA only but of course it has become a hugely successful business with well over 100 million paying customers and sufficient income to invest billions of dollars each year into new programming.
  2. The strong seasonality of Amazon’s revenues is starkly illustrated in this chart. For Amazon – the Everything Store – the fourth quarter of the year matters enormously to their revenue projections.
  3. Here is an interesting example of just how dependent is Apple on each iteration of the iPhone to create revenue. The iPhone accounts for around 60 per cent of their total revenues each quarter.
  4. A few years ago revenues for publishers of physical books were under threat from e-readers such as the Kindle. But it appears that a corner may have been turned. Revenues for books are growing once again, in part because of the rise of self-publishing, a slowdown in e-reader usage and strenuous attempts by booksellers to improve their non-price competition and make the experience of book browsing and purchasing more rewarding.
  5. I've added in a chart to show the leading low-cost airlines in the world ranked by total revenue. SouthWest Airlines was the first major low-cost carrier. Naturally businesses such as easyJet and RyanAir and Jet Blue have become hugely prominent especially in the European market. But many of these airlines rely heavily on ancillary revenues to boost their commercial viability - including extra charges for priority boarding, checked in luggage and much else besides.