Tags: Netflix | earnings | streaming | video

Netflix Gets 7 Million New Customers; Stock Hits Record High

Netflix Gets 7 Million New Customers; Stock Hits Record High

(Source: Netflix home page)

Wednesday, 18 January 2017 05:09 PM

Netflix Inc. signed up a record 7.05 million new customers in the fourth quarter, topping analysts’ estimates for domestic and international growth to cap the company’s first year as a global online TV service.

The company added 5.12 million new customers in international markets, according to a statement Wednesday, beating analysts’ estimates of 3.78 million. Los Gatos, California-based Netflix also signed 1.93 million new domestic customers, exceeding projections of 1.38 million. The shares jumped in late trading.

The popularity of the period drama “The Crown,” about a young Queen Elizabeth II, and new seasons of “Gilmore Girls” and “Black Mirror” helped Netflix lift its total online customer base to almost 94 million. Since expanding to 130 new countries last January, Netflix has delivered strong international gains and could see foreign subscribers exceed its U.S. base this year.

First-quarter earnings will be $165 million, or 37 cents a share, a big first installment on founder and Chief Executive Officer Reed Hastings’s vow to deliver material profit in 2017. The company, the world’s largest paid video service, bet its future on globally replicating its success in the U.S., where it has almost 50 million customers, sacrificing near-term profit while spending heavily on programming and marketing to build a global TV audience.

Hastings still has a long way to go. While Netflix has signed up almost half of the available market at home, it hasn’t reached that percentage of broadband households in even its strongest foreign territories, such as the U.K. and Canada.

Shares of Netflix gained as much as 9.6 percent to $146 in extended trading after results were announced. The stock rose 0.3 percent to $133.25 at the close in New York after rising 8.2 percent in 2016.

Netflix tends to credit strong performance to new seasons of original shows. Notable debuts in the period included “The Crown,” a reboot of “Gilmore Girls” and the company’s first original Brazilian series, “3%.” The company also released a new season of the sci-fi “Black Mirror,” along with a movie based on President Barack Obama’s time in college and a number of stand-up comedy specials.

 

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Netflix Inc. signed up a record 7.05 million new customers in the fourth quarter, topping analysts' estimates for domestic and international growth to cap the company's first year as a global online TV service.
Netflix, earnings, streaming, video
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2017-09-18
Wednesday, 18 January 2017 05:09 PM
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