Netflix's Expanding Contribution Margin is Evidence of an Exceptional Business

Netflix (NASDAQ: NFLX) continues to prove to investors that it is an exceptional business.

The most potent argument in favor of this is Netflix's contribution margin performance. Essentially the gross profit margin for each of Netflix's segments (domestic streaming, international streaming, and domestic DVD), contribution margin subtracts costs attributable to that segment from its revenues. By adding the contribution profits of each segment, you get the gross profit of the entire company.

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Source: Fool.com