Netflix Inc added a record 7 million subscribers over the past quarter as part of its global expansion drive, fueling a surge in revenue and profit for the streaming television giant.
California-based Netflix in its quarterly report on Wednesday said it ended the year with about 94 million subscribers, adding 5 million outside the US in the last three months of the year.
“This was the largest quarter of net additions in our history and was driven by strong acquisition trends in both our US and international segments,” Netflix said in its quarterly update.
That growth helped push net profit up 55 percent in the fourth quarter to US$66.7 million, while revenues were up 36 percent from a year earlier to US$2.5 billion.
The stronger-than-expected results lifted Netflix shares more than 8 percent in after-hours trade.
“This quarter marks the 10-year anniversary of our launch of streaming,” Netflix said. “The next decade will be even more amazing and tumultuous as Internet TV supplants linear TV, and as we strive to remain a leader.”
Netflix added about 20 million new customers globally in the full year after announcing in January last year its plan to expand to about 190 countries to become a “global television network.”
“We are learning rapidly how best to match content with audience tastes around the world,” said the company’s quarterly letter to shareholders.
“It is clear to us that high-quality content travels well across borders.”
Netflix said it expects to see strong growth ahead even as it faces more competitors, such as Amazon.com Inc, which is also expanding globally.
The letter said Netflix expects 5.2 million new customers globally, including 3.7 million outside the US in the first quarter.
“We will seek to steadily increase revenue and operating margin as we balance growth and profitability,” the statement said.
“We are in no rush to push margins up too quickly, as we want to ensure we are investing aggressively enough to continue to lead Internet TV around the world.”
The expansion drive has meant that about half — 47 percent — of Netflix users are now outside the US, a proportion expected to increase as it adds more customers.
Known for its broad array of on-demand content and original productions such as House of Cards and Marco Polo, Netflix said it continues to invest in new content.
International growth remains a money-losing operation as Netflix invests in winning audiences around the world, but analysts saw the strategy as necessary to counterbalance inevitable slowing at home.
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