1. TechSpot is dedicated to computer enthusiasts and power users. Ask a question and give support. Join the community here.
    TechSpot is dedicated to computer enthusiasts and power users.
    Ask a question and give support.
    Join the community here, it only takes a minute.
    Dismiss Notice

Netflix exceeds growth expectations at home and abroad as stock soars

By William Gayde ยท 10 replies
Jan 19, 2017
Post New Reply
  1. Netflix is definitely doing something right. Their fourth quarter report topped analysts' estimates at the end of their first year as an international streaming service. Netflix added 1.93 million domestic subscribers which beat estimates of 1.38 million. The real growth came abroad though as Netflix added 5.12 million international subscribers, again above the 3.78 million estimate. Shares gained nearly 10% to an all-time high of $146 per share and finished up 0.3% following the announcement. 

    Much of Netflix's success has been attributed to their original programming. New releases of "Gilmore Girls", "Black Mirror", and others helped boost Netflix's subscriber count to over 93 million. By sacrificing short term profits to focus on long term marketing and original content, Netflix has helped build its large audience. Expanding to over 190 countries has also allowed them to start replicating their domestic success abroad. It's certainly working.

    Analysts predict a further growth of 1.7 million subscribers next year with international subscribers growing by 3.5 million. Netflix has nearly half of U.S households signed up, but nowhere near that number abroad.

    They are spending heavily to continue their global expansion and hopefully achieve the level of success they have in America. With this, their long term budget includes $14.5 billion in programming expenses. A negative cash flow has worked in the past, and Netflix is again forecasting a $2 billion deficit this year.

    This growth is a far cry from the Netflix of old. Before hits like "House of Cards" and "Orange is the New Black" came out, Netflix was on the verge of collapse. Although investors, customers, and even Netflix executives hated it, the decision to split the streaming and DVD rental businesses has definitely paid off.

    Permalink to story.

  2. cliffordcooley

    cliffordcooley TS Guardian Fighter Posts: 11,266   +4,935

    It amazes me how some companies can continue to grow after starting to screw consumers. And yet the reviews can only speculate with the following quote.
    Reehahs and alabama man like this.
  3. alabama man

    alabama man TS Guru Posts: 563   +355

    They have the same HBO copy show 5 times and old movies. I would like more; international series, comedy series, educational stuff and normal documentaries (fact based, not entertainment). I live in europe and I guess the catalog is bigger in US but it costs the same here and only way to get HD is to pay for two viewers. For that money I can buy 5-6 blurays a month and they won't be removed from catalog right before you wan't to watch them, and they have better quality.
  4. Ranger1st

    Ranger1st TS Evangelist Posts: 348   +124

    They are going to take a big user hit in Canada if/when the government implements a double tax on Netflix and other similar services
  5. yRaz

    yRaz Nigerian Prince Posts: 2,859   +2,167

    Netflix isn't screwing people, content owners are screwing netflix which leads to the consumer getting screwed.
    wiyosaya and Reehahs like this.
  6. Evernessince

    Evernessince TS Evangelist Posts: 3,903   +3,350

    Just think of it like this

    They are most certainly not screwing over their customers nearly as much as the cable monopolies are.
    wiyosaya and Reehahs like this.
  7. cliffordcooley

    cliffordcooley TS Guardian Fighter Posts: 11,266   +4,935

    That's very true.
    wiyosaya and Reehahs like this.
  8. Reehahs

    Reehahs TS Guru Posts: 729   +472

    I can watch a Netflix original in pretty much any country I go to with an internet access, same cannot be said for cable or other services.
  9. wiyosaya

    wiyosaya TS Evangelist Posts: 3,835   +2,185

    You have that quite right!!

    IMO, the new biggest screw jobs are all these streaming services that are popping up like flies on sh!t. Less channels, more money per channel, run by cable/satellite operators who are laughing all the way to the bank!
  10. darkzelda

    darkzelda TS Evangelist Posts: 352   +144

    I actually like Netflix, it'd love to see movies make it quicker to the service and not some years later.
  11. drjekelmrhyde

    drjekelmrhyde TS Evangelist Posts: 321   +112

    Cool now can you update your horror section

Add your comment to this article

You need to be a member to leave a comment. Join thousands of tech enthusiasts and participate.
TechSpot Account You may also...