Netflix says it now has 104 million subscribers worldwide

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Netflix CEO Reed Hastings

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Netflix shares surged on Monday after the agency mentioned it now has about 104 million subscribers, a larger-than-expected quantity that boosted revenues.

Firm leaders mentioned the beneficial properties are an indication that funding in new exhibits and films is paying off as on-line tv turns into extra common.

The agency is behind exhibits similar to 13 Causes Why, about teen suicide, and the political drama Home of Playing cards.

Boss Reed Hastings mentioned it was “the rewards of doing nice content material”.

Netflix shares rose greater than 10% in after-hours buying and selling following the announcement of its second quarter earnings.

Firm leaders mentioned new content material creation was vital to competing towards different on-line rivals similar to Amazon and YouTube, in addition to conventional tv.

They mentioned producing new content material additionally meant streaming providers had been increasing the scale of the general market.

“The largely unique nature of every service’s content material signifies that we’re not direct substitutes for one another, however fairly enhances,” firm leaders wrote in a letter to shareholders.

“The shift from linear TV to on-demand viewing is so large and there may be a lot leisure time, many web TV providers can be profitable.”

Netflix mentioned it added about 5.2 million members through the quarter, most from abroad.

Worldwide members now account for about half of Netflix subscribers, the agency mentioned.

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Netflix

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Netflix collection 13 Causes Why got here in for criticism over its depiction of suicide however was extremely common with teenagers

The agency has cultivated these audiences with motion pictures similar to Okja, a movie made by one in all South Korea’s high administrators a few younger woman’s quest to get better an enormous companion from a multi-national company.

The agency additionally mentioned it expects worldwide members to assist increase income for the yr – a primary for that a part of the enterprise.

The expansion helped produce $2.8bn in quarterly income, up greater than 32% from the identical interval in 2016.

Netflix mentioned it expects income to achieve almost $3bn within the third quarter.

Earnings for the three months that led to June had been $65.6m, up about 60% year-on-year.

Firm leaders additionally informed traders they plan to proceed to speculate extra in content material because the agency grows.

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