Nexflix Experiences Major Subscriber Growth - Globally!
The world’s largest paid online TV network added much more subscribers than expected in the third quarter. Netflix also announced that it looks forward to adding approximately 28.9 million customers in total this year. This would be a new record for the company.
The results should extend Netflix’s reign as one of the best-performing stocks on the market with its shares growing by 80 percent this year.
Reed Hastings, the Chief Executive Officer at Netflix, said that the public should anticipate a lot more growth in streaming video entertainment as that was Netflix’s focus for the future.
6.96 million new customers subscribed to Netflix in the third quarter, increasing its global total to 137.1 million.
Netflix’s recipe for success is that it invests billions in original programming and uses those TV shows and movies to lure subscribers.
The streaming giant never identifies which shows are the most successful, nor does the company release viewership numbers as it believes that its subscriber growth demonstrates the popularity of its entertainment slate.
Netflix pointed India out as one area that was a point of strength.
India is already one of You Tube's largest markets. The country’s dense population together with the Indian public’s massive enthusiasm for the internet means that there is excellent potential for Netflix to grow in that country.
The key to Netflix’s future lies in dominating International territories remain the key to the company’s future, and the company is well on its way to reaching that goal as its following sky-rockets in international areas such as Brazil, the U.K., Mexico and Canada.
In the U.S. Netflix predicts to grow by 1.8 million new customers this quarter, bringing the U.S total to 60.3 million.
Netflix reports a net profit yet it spends more than it takes in and continuously borrows to finance its programming budget. This is a factor that has bothered rivals for a long time.
The number of people subscribing to satellite TV has fallen in recent years because viewers have been migrating to streaming services such as Netflix instead.
Media companies that previously sold programs to Netflix for millions of dollars have now been inspired to build their own on-demand services to compete with Netflix. Disney, AT&T Inc. and HBO are among the companies that are introducing streaming services next year.
Netflix welcomes the competition.