Looking at this chart, we see that the average Netflix subscriber spent about $105 and $115 on subscriptions between 2017 and 2018. To create enough content to gain and retain all of these subscribers, Netflix had to pay on average $70 in 2017 and $69 in 2018 for each subscriber. That left them with a yearly gross profit of $35 in 2017 and $46 in 2018 per subscriber.
About 9% of customers left the service after about a year. This rate was consistent throughout 2017 and 2018.
Plugging all that data into the equation, between these two years, Netflix’s LTV per customer increased from $392 in 2017 and $515 in 2018. Averaging that out, we got an LTV of $453.5 between the years 2017 - 2018.
The LTV to CAC Ratio of Netflix
But, in the case study above, the calculation of the cost of revenue was bare-boned at best. It only considered the amount spent on making content without including marketing costs.
The following table should give you a better idea of what the CAC could look like based on open-source information: