Almost 6 million people joined Netflix in Q4 2015

[Justin Herrick]

Netflix is proving that video streaming is not slowing down anytime soon, at least on an international level. This afternoon, Netflix shared the results of its performance during the final quarter of 2015 and actually bested Wall Street’s expectations internationally while falling behind in the United States. Regardless, the video streaming service generated $1.82 billion in Q4 2015, giving it a 23% increase over the same quarter of 2014.

The big jump in revenue came from Netflix’s international subscriber growth.




Netflix was able to gain 1.56 million subscribers in the United States and 4.04 million subscribers elsewhere in the world; however, Wall Street was expecting more domestic subscribers. What could be leading to a slowdown in domestic subscriptions? Probably just a thinning number of people in the United States thinking the service is right for them. Netflix already has millions of subscribers in its home country; therefore, room for growth is not what it once was. But that won’t stop Netflix from producing content targeted at an American audience. Existing subscribers need to stay happy in order to keep paying the newly-increased monthly fee.

At CES 2016, Netflix announced it would be simultaneously launching in basically every country worldwide. And that’s exactly why the company believes it will add 6.10 million subscribers in the first quarter of this year alone. It now has access to a massive amount of a people who just need try out the service for one month, enjoy Netflix’s catalog of syndicated and exclusive content, and be hooked for the future.

Netflix sent a letter to shareholders highlighting its target:

We are starting by primarily targeting outward-looking, affluent consumers with international credit cards and smartphones. As with every market we’ve launched, our approach is to listen, learn and improve rapidly, adding more content.
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The expansion, though, pushed the company to condemn the use of proxy services and proclaim that subscribers using them will be denied access to the service. Putting Netflix on a global stage makes international content more savory but also increases the riskiness of piracy.

Click here to view the embedded video.

After-hours trading valued Netflix shares at $116.78, which is up 8%, upon the reporting of the company’s quarterly earnings.

Via: Yahoo Finance


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