Netflix, on Monday, reported its quarterly results and the outcome had surpassed all the expectations by a record of 5.2 million new added members. The results show no slowdown in demand for the video-streaming company’s service, with a number of its original shows like “13 Reasons Why”, “Orange is the New Black”, and “House OF Cards” helping in attracting more viewers to the platform. The figures crossed the company’s own estimate of 3.2 million new users and gave Netflix a whopping 104 million subscribers worldwide.
Following the release of its numbers, Netflix shares leapt more than 10 percent in a single day and in after-hours trading, the stock prices climbed as high as USD 179.20. In a letter to its shareholders, Netflix said, “We are all co-pioneers of internet TV and, together, we are replacing linear TV. The shift from linear TV to on-demand viewing is so big, and there is so much leisure time, many internet TV services will be successful.”
Despite a strong competition in the Internet streaming ecosystem filled with players like Amazon, Hulu, HBO, and Youtube, Netflix managed to garner almost 1.07 million customers in the US while a majority of 4.14 million new subscriptions were registered internationally in the second quarter. Currently, the online-streaming giant offers its services in more than 190 countries in 27 different languages.
Netflix also announced that it took in USD 2.8 billion in total revenue in this quarter and it estimates about USD 3 billion more in the next quarter, which is a jump of 30 percent from 2016 and its highest revenue goal yet.
“We underestimated the popularity of our strong slate of content which led to higher-than-expected acquisition across all major territories,” Netflix said in the aforementioned letter, “The competition for entertainment time is always intense, but the silver lining is that the market is vast and diverse.”
About its gaining popularity in Asia, Netflix said, “We are making good progress with our international expansion as improving profitability in our earlier international markets helps significant fund investment in our newer territories.”
In the first quarter, the company reported a loss of USD 13 million outside of the US. However, it now seems that the company has gained back its traction in the second quarter.