Wed, Oct 18, 2017 - Page 10 News List

Netflix adds 5m subscribers and doubles its profit

AFP, SAN FRANCISCO

Netflix on Monday said it added about 5 million new subscribers over the past three months as profits doubled, in a quarterly update that sent shares of the streaming video giant higher.

California-based Netflix ended the third quarter of the year with more than 104 million paid subscribers, with international memberships hitting 52.7 million and overtaking the number of US subscribers.

Net profits meanwhile jumped to US$129 million, more than double the figure from the same period a year ago for the video giant known for House of Cards, The Crown and other original shows that are part of its library.

Revenues in the quarter rose 30 percent from a year ago to US$2.98 billion, Netflix said.

“We are growing nicely across the world and are on track to exceed [US]$11 billion in revenue in 2017,” a letter to shareholders said.

“Internet entertainment is delighting consumers and we are staying at the forefront of this once-in-a-generation opportunity,” it added.

Netflix has been aggressively expanding around the world and is now present in about 190 markets, making it the leading service for streaming or on-demand television.

Shares in the company jumped 1.7 percent in after-hours trade on the stronger-than-expected results.

Earlier this month, Netflix said it was increasing prices for customers in the US and parts of Europe to help fuel investments in original shows and boost expansion.

“We spend disproportionately in the US to generate media and influencer awareness for our programing which we believe, in turn, is an effective way to facilitate word of mouth globally,” a Netflix letter said.

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