Netflix Trumps Estimates with Millions of New Subscribers
Once considered on the decline, streaming service Netflix posted a whopping gain over estimates as expansion into other markets helped the company achieve tremendous subscribers over the latest period of reporting. Reports indicate that the company added nearly two million new subscribers in the U.S. and over five million around the globe. Analysts had estimated the company to add 1.44 million subscribers in the U.S. and a gain 3.74 million international subscribers.
In a statement released to its shareholders, Netflix said it was committed to spending $6 billion on content which is more than the $5 billion it spent in 2016. The company also is encouraged for the latter half of 2017 as shows such as Orange Is the New Black, Unbreakable Kimmy Schmidt and Master of None will return.
Netflix now has 89.09 million paying members worldwide with no signs of slowing down despite rivals such as Amazon Prime Video and HULU. Netflix just reached its 10th anniversary of streaming as the company had previously been in the DVD rental business shipping customers movies and shows via mail.
“Weakening of US net neutrality laws, should that occur, is unlikely to materially affect our domestic margins or service quality because we are now popular enough with consumers to keep our relationships with ISPs stable,” from the Netflix earnings report. “On a public policy basis, however, strong net neutrality is important to support innovation and smaller firms. No one wants ISPs to decide what new and potentially disruptive services can operate over their networks, or to favor one service over another. We hope the new US administration and Congress will recognize that keeping the network neutral drives job growth and innovation.”