Netflix on the verge of hitting 100 million subscribers
- Author: Darren Santiago Apr 20, 2017,
Apr 20, 2017, 9:23
Netflix, which has been rapidly expanding globally as its business in the US slows, predicted that profit will drop in the second quarter as the company spends more on new series and movies.
The prediction comes as the service made public it's Q1 2017 results, reporting an added 1.42 million subscribers in the USA, with an additional 3.53 million in the rest of the world.
An analyst from Wedbush Securities said that the boom of smartphones and tablet devices paved the way for people to watch and stream video anywhere, especially with the ability to download content for offline watching. Hastings also made it clear that unlike Amazon Prime Video, Netflix has no intentions of getting into live streaming of sporting events.
The streaming service had previously forecast an addition of 5.2 million subscribers worldwide in Q1 2017 to reach 99 million. Netflix concluded March with nearly 48 million users outside the U.S.
Netflix needs to add millions of subscribers every quarter to help pay for the billions of dollars the company spends making TV shows and movies or licensing programs from others.
Revenues jumped 35 percent to $2.6 billion as the company's launch in 130 new countries last January paid dividends.
For the quarter that ended March 31, Netflix added 3.53 million subscribers outside the United States.
Its shares dropped as much as 3 per cent in after-hours trading before rebounding to gain 1.3 per cent. It lost some long-time US subscribers after their rates went up by as much as $2 per month past year.
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The model works from a customer viewpoint because it is such a great value, Pachter said.
The on-demand video streaming website Netflix is expected to generate 100 million subscribers over this weekend.
Netflix has expanded around the world over the last few years, betting that its US formula would pay off in other countries. It plans to invest $6 billion in content this year, more than major competitors, including Amazon and CBS. For the record, Netflix's overseas subscriber count totaled almost 48 million by the end of March.
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