Netflix has managed to add more new subscribers than it had anticipated during the fourth quarter, thanks to a constantly growing international user base. As you can expect, this has made investors pretty happy and shares rose swiftly following the announcement earlier this week.
The company saw 4.33 million subscribers sign up to the video streaming service during the fourth quarter, beating out its forecast of 4 million new subscribers. The company now has a total of 57.4 million subscribers world wide, a figure which is expected to grow even further to 61.4 million by the end of this quarter.
This new global expansion effort has helped Netflix and continues to be a big part of the company’s strategy. Netflix is expecting to finish expanding and offer a global service within two years time.
Investors have obviously been watching Netflix’s subscriber growth closely, back in October when the company reported earnings slightly lower than expected, shares dropped by 25 per cent.
Net income for this fourth quarter was $83 million while revenue rose to $1.48 billion from $1.17 billion a year ago.
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KitGuru Says: Netflix offers a solid service so its not surprising that its subscriber base is growing quickly. I imagine things will continue to rise with Netflix becoming available in more countries, including New Zealand and Australia at the end of this quarter.