Netflix adds 7 million subscribers in global expansion

Netflix adds 7 million subscribers in global expansion

SAN FRANCISCO - Agence France-Presse
Netflix adds 7 million subscribers in global expansion

AP photo

Netflix added a record seven million subscribers over the past quarter as part of its global expansion drive, fueling a surge in revenue and profit for the streaming television giant.

California-based Netflix said in its quarterly report on Jan. 18 it ended the year with nearly 94 million subscribers, adding five million outside the United States in the last three months of the year.

“This was the largest quarter of net additions in our history and was driven by strong acquisition trends in both our US and international segments,” Netflix said in its quarterly update.

That growth helped push net profit up 55 percent in the fourth quarter to $66.7 million, while revenues were up 36 percent from a year earlier to $2.5 billion.

The stronger-than-expected results lifted Netflix shares more than eight percent in after-hours trade.

“This quarter marks the 10-year anniversary of our launch of streaming,” said Netflix.

“The next decade will be even more amazing and tumultuous as internet TV supplants linear TV, and as we strive to remain a leader.”   

Netflix added nearly 20 million new customers globally in the full year after announcing last January its plan to expand to some 190 countries to become a “global television network.”   

“We are learning rapidly how best to match content with audience tastes around the world,” said the company’s quarterly letter to shareholders.

“It is clear to us that high quality content travels well across borders.”
Netflix said it expects to see strong growth ahead even as it faces more competitors such as Amazon, which is also expanding globally.

The letter said Netflix expects 5.2 million new customers globally, including 3.7 million outside the U.S. in the first quarter.