Netflix tops 100m subscribers
Streaming service now has more international than US domestic members.
- Published by David Knox
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- Filed under Streaming
Netflix has reported its latest earnings, with its streaming membership growing more than expected, from 99m to 104m.
The growth is due to what the company labelled “our amazing content”.
“We also crossed the symbolic milestones of 100m members and more international than domestic members. It was a good quarter.”
Growth in Australia is contributing to a Netflix Q3 2017 international forecast of 3.65m new customers.
Audience growth:
Netflix noted it underestimated the popularity of the slate of content which led to higher-than-expected acquisition across all major territories. As a result, global net adds totalled a Q2-record 5.2 million (vs forecast of 3.2m).
For the first six months of 2017, subscriber growth was up 21% year-on-year to 10.2m.
Netflix assumes it will maintain current momentum, but it was wary of being too bullish.
The international subscribers now account for more than half of the membership base – 50.1%.
International revenue rose 57% year-over-year.
International losses were down to -$13 million vs -$69 million (all amounts US dollars) due primarily to higher-than-forecasted paid members.
Growth in Australia is contributing to a Netflix Q3 2017 international forecast of 3.65m new customers.
Regarding international earnings, Netflix commented: “We are making good progress with our international expansion as improving profitability in our earlier international markets helps fund significant investment in our newer territories. As a result, we expect positive international contribution profit for the full year 2017. This would mark the first ever annual contribution profit from our international segment.”
Content:
Netflix highlighted that the Television Academy has nominated 27 Netflix original programs with 91 Emmy nominations, nearly double last year’s tally. With five of the 14 total nominated best series contenders (Stranger Things, The Crown, House of Cards, Master of None and Unbreakable Kimmy Schmidt), Netflix had the most nominated series of any network.
Both Stranger Things and The Crown will have second season premieres in 2017.
The staggering content pipeline running out of Netflix has seen Q2 premieres of 14 new seasons of global Netflix original series, 13 original comedy specials, six original documentaries, two original documentary series, nine original feature films and seven seasons of original series for kids.
Netflix also shed some light on its programming decisions: “Sometimes those shows don’t attract as many viewers as we had hoped, compared to our other content. As much as we dislike ending a series early, it consoles us that it frees up investment for another new show, or two. We are programming to please our members and we keep that as our guiding light. We love it when we support a new series that has big impact like Stranger Things, Cable Girls and 13 Reasons Why.
Growing video entertainment:
Netflix has also commented on the changing way people are consuming video content:
“In addition to the many SVOD players around the world (Blim, Globoplay, FilmStruck, Hooq, iflix, Stan etc) the large-cap tech companies, especially Amazon, are investing heavily in original and licensed content around the world. They join all the existing TV networks (BBC, AMC, NHK etc) of the world, and us, in bidding for great content. Creating a TV network is now as easy as creating an app, and investment is pouring into content production around the world.
“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. The internet may not have been great for the music business due to piracy, but, wow, it is incredible for growing the video entertainment business around the world.”
Source: Mediaweek
3 Responses
As an added bit of spice to this article I read that speculation has started about Netflix being a target of a take over by either Apple or Disney or even Amazon, with Netflix’s debts they could find themselves accepting some sort of merger in the future. Personally, I’m suspicious that the almost eccentric ideas being promoted by Netflix, especially for the movie industry are actually a ploy to make this mega entertainment streaming company happen.
I wish we here in Australia had at least half of the titles they have on the American Netflix. But at last count we had about 30 or percent of what they have over there. A shame really. Always disappointing that they keep taking stuff off netflix as well instead of just letting the collection slowly build up more and more.
I would say that Netflix’s growth is because of it’s dominant market share and product placement which has the Netflix logo printed on nearly every Smart TV remote, an absolute winner for them and also with the TV manufacturers who see mutual benefit to have 4K product to broadcast on their new generation UHD TV’s. As with all product leaders Netflix will find competition a little tougher as other streaming services like Amazon compete with their own 4K content and their own place on devices and TV remotes. Other streaming services in Australia will have to fast forward their 4K and UHD content to keep up with consumer expectation.