Netflix added 5.59 million members in the fourth quarter of 2015, handily beating its own forecast of 5.15 million new subscribers.
Advertisement
In its Q4 projections given on October 14, Netflix expected to add 1.65 million US streaming subscribers and 3.5 million foreign subscribers, for a total of 74.32 million subscribers.
Netflix has posted its fourth-quarter results, and the most interesting takeaway is that it managed to add enough subscribers just a few hours after the quarter closed on 1 January to hit 75 million members.
Global customers grew by 4.04 million, versus the 3.5 million seen by analysts. With its announcement at CES earlier this month that it has expanded to an additional 130 countries around the globe, it solidified its unique status as a broadcaster without borders, able to strip away numerous conventions and constraints of its peers in traditional television. Total revenue for last quarter added up to $1.82 billion, narrowly missing the Wall Street consensus estimate of $1.83 billion.
Netflix shares jumped more than six percent to $115.20 after revealing that its ranks of members has topped 75 million and that it made a profit of $43 million in the final quarter of a year ago.
The company ended 2015 with 74.76 million streaming customers worldwide, including 44.74 million in the U.S.
Netflix finished the third quarter with more than 69 million subscribers. Hastings said that Netflix has modest and long-term expectations for a foray into China, which may not take place until next year.
As for its first original film from Adam Sandler, The Ridiculous Six, Hastings and Wells say it was “the most viewed movie on Netflix in every territory the week of its debut and the most-viewed movie ever on Netflix in the first 30 days on the service”.
Netflix, Inc. continues to thrive with the online streaming company, adding a record number of new subscribers in the fourth quarter of 2015. In 2014, Netflix raised the price of its service for new subscribers, but grandfathered in its then-current high-definition subscribers at their $7.99 a month rate. The success of the original series “Narcos” and “Marvel’s Jessica Jones” helped to fuel growth.
The company’s shares rose as high as 10% in after-hours trading following the release of the earnings report.
Advertisement
Reed Hastings, Netflix’s chief executive officer has promised to provide material profits as soon as the company finishes up its global rollout.
