Netflix reached a new milestone as, according to a company release, the company’s streaming service now numbers over 100 million subscribers worldwide, a first in its history. Following this announcement, Netflix’s shares also registered a significant jump, of up to 10.3 percent, in after hour trading in New York.
The 100 Million Subscribers Threshold Surpassed With Some Domestic and International Help
Netflix announced that, following the second quarter of the year, its services now number 104 million subscribers. The company surpassed the 100 million milestone as 5.2 million new customers joined the service over this second quarter.
The value exceeded analyst expectations, which were expecting only some 3.2 million new users. This higher than expected number is even more impressive as the second three months of the year are generally considered a slow period in the year for the industry.
Netflix’s report shows that its service had a higher than expected worldwide performance. This surpassed the 2.59 million estimated figure and reached 4.14 million in non-US markets.
Domestic numbers also exceeded analyst estimates, as 1.07 million new subscribers joined the service, more than the expected 631,000 value.
This increase in subscribers also brought with it a revenue rise, as the company reported a 32 percent year-on-year increase for the second quarter. The second three months of the year returned a $2.8 billion revenue. Profits were also 60 percent higher than in the previous 12 months and reached $65.6 million.
Reports indicate that, for the first time since its launch, Netflix now has more subscribers in international markets rather than domestic ones. The company is also expecting an additional increase in its international numbers, as 3.5 million customers are expected to join Netflix in the three months up till the end of September.
Netflix considers that its latest surge in subscribers can be attributed to its strong slate of newly released content, which includes the much-discussed series 13 Reasons Why, and also the newest season of House of Cards.
Still, the company underlines the importance of creating new content, on which it spends a reported $6 billion a year.
“The largely exclusive nature of each service’s content means that we are not direct substitutes for each other, but rather complements,” writes the company in a letter to its shareholders.
Image Source: Flickr