When a European citizen residing in Europe pays a subscription for Netflix, is this counted as an import of US goods and therefore only increases the GDP of US but not of the European country ?

What about the case of UBER? The part of the cost that pays UBER the company increases US GDP and the part of the cost that pays the driver increases the European country's GDP?


1 Answer 1


It is the same distinction as your other question. BEA computes GDP and GNP. Domestic measures cover activities that take place within the geographic borders of the United States.

None of its is included in GDP.

  • 2
    $\begingroup$ This is assuming the country of interest has a separate legal entity of Netflix](find-and-update.company-information.service.gov.uk/company/…) in the UK. How Netflix handles transfers or payments for stuff they produce etc may complicate this. By large, any firm (subsidiary, plant) located in another country but owned by a US company, does not count towards us GDP. $\endgroup$
    – Alex
    Jan 24, 2022 at 7:23
  • $\begingroup$ @Alex but it counts towards US GNP because the parent firm is American? $\endgroup$ Jan 25, 2022 at 2:24
  • $\begingroup$ The portion of the value that reflects U.S. residents’ labor or property is included in GNP. However, since netflix UK does not reside in the US for example, most of it will count towards UK GNP, just like U.S. affiliates of foreign (non-US) companies count towards US GNP. $\endgroup$
    – AKdemy
    Jan 27, 2022 at 20:00

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