Netflix subscribers now top 75 million as a price hike approachesBy Tim Schiesser 7 comments
Netflix has recorded another successful quarter, reporting $1.823 billion in revenue and profits of $43 million for Q4 2015, sending share prices up by around seven percent in after hours trading.
But it's not just revenue figures that are impressing investors: Netflix now has 75 million subscribers worldwide, and although 45 million of them are located in the United States, the company saw record growth in international markets in Q4. Of the 5.59 million new subscribers the service reported, 4.04 million were from outside the USA, compared to 1.56 million from within.
The company also reiterated its plan to increase the cost of the standard streaming package by $1 or $2 for existing users. Netflix already rolled out the updated pricing structure for new users last year, but in a few months the service will remove grandfathered pricing and force everyone to fork out $9.99 for HD streaming. Non-HD streaming will still be available for $7.99, while family sharing with Ultra HD will cost $11.99.
Netflix isn't just going to bank the extra money from increasing subscription costs without improving their service. In 2016, around 600 hours of original content will be added to the Netflix library, including new seasons of pretty much all their popular TV shows, along with some completely new IP.
In the next finanical quarter for Netflix, the company will be able to include numbers from the 130 extra countries that were allowed to access the service earlier this month. However, the service has begun to crack down on users who bypass geo-restrictions, which might have a small effect on the number of international users who retain their subscription.