Massive subscriber growth for Netflix

Massive subscriber growth for Netflix

Netflix never shares any actual viewing metrics for single titles, but the company gave us another indicator for the success of "To All the Boys I've Loved Before" in the form of Instagram data Tuesday. That beat analysts' average estimate of 68 cents, according to Refinitiv. In total, Netflix now enjoys north of 137 million subscribers, 130 million of which are paying members. The company, founded in 1997 as a DVD-by-mail service, posted its strongest years of subscriber growth in 2016 and again in 2017 - in its 20th and 21st years of operation. In the third quarter previous year, Netflix added 5.3 million subs. And it brought in 5.87 million worldwide subscribers, topping the 4.46 million estimate.

"If you've got five to 10 years more growth in your current market, you're probably optimizing value to stay in your current market and strengthen", said Reed.

Netflix revenue in the quarter increased 34% year-on-year to almost $4bn, while profits more than tripled to $403m. The stock rose as much as 17 per cent in after-hours trading to US$405, and the market value of the company once again challenged media giants such as Comcast Corp., the largest U.S. cable provider, and Walt Disney Co, the world's largest entertainment company.

Netflix added 6.96 million new subscribers in Q3, well above the 5.3 million new subscribers it reeled in at this time past year and the roughly 5 million expected by analysts.

"It was a surprisingly good quarter that caught a lot of the financial community off guard", said Jim Nail, a senior analyst at Forrester Research Inc. Netflix said its bottom line would be weighed down by having to recognize on its income statement the money it's invested in licensing and developing movies and shows, particularly its "Originals". Analysts were expecting $4 billion also.

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Total streaming net change for fourth quarter: 9.4 million. But no one grew their Instagram audience as much as "Stranger Things" star Millie Bobby Brown, who apparently had close to no fans on the platform before the debut of the show, and now has 17.6 million Instagram followers. "Even the US number was better than I thought it would be".

The video streaming giant said today it added an impressive 5.87 million global subscribers in the third quarter of 2018, far higher than a FactSet estimate of 4.46 million cited by CNBC. Even before the after-hours surge on Tuesday, the shares were up 80 percent this year.

As for earnings, Netflix generated $4 billion compared to the $3 billion it took in a year earlier.

Media companies that once sold programs to Netflix for hundreds of millions of dollars are now building their own on-demand services to compete head on.

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