Updated at 2:21 p.m. PST with comments from Hastings about subscriber growth from the Q3 live video presentation.
Netflix is continually boosting its total number of paying subscribers, the company revealed in its Q3 2013 earnings report today.
The company added 1.3 million domestic subscribers for the quarter for a total of 31.1 million. That’s in the upper end of Netflix’s 700,000 to 1.5 million subscribers it estimated in its Q2 guidance, which is one indication that the company’s current strategy is working. Netflix was awarded an Emmy for its House of Cards original series earlier this year and continues to tout its latest original series, Orange Is The New Black, as another reason for its continued success.
But what’s more interesting is the international subscriber growth. Netflix reportedly added 1.5 million new subs for the quarter, up from 610,000 in Q2. The company has a total of 40.3 million subscribers across 41 different countries.
During today’s live web presentation, Hastings surprisingly said that the subscriber growth wasn’t overwhelmingly impacted by the highly publicized three months of free service offered to those that purchased Google’s new Chromecast streaming stick — with the promo becoming so successful Google actually had to end it early.
Another thing that Hastings claimed didn’t have a big impact was the launch of “profiles,” a feature that allows people to share a single account with their own separate queues (aka “My List”). Theoretically, the profiles roll out could have negatively impacted subscriber growth because people would now no longer need to maintain two separate subscriptions to get the same features.
Netflix shareholders are likely to be pleased with the subscriber growth, especially because it highlights that Netflix’s strategy is sound — at least for the moment. In addition to boosting the number of original and exclusive TV series on the streaming service, Netflix’s larger strategy is to use profits from its domestic business to fuel its expansion into new regions. Over the last year, it has launched service in the U.K., Ireland, Latin America, Norway, Denmark, Sweden, Finland, and most recently the Netherlands.
Netflix is estimating subscriber growth to continue in Q4, with 1.3 million new customers internationally and another 2 million new subs in the U.S.
Netflix head honcho Reed Hastings and crew are scheduled to do a live video presentation on the Q3 results in a few minutes via YouTube, which we’ve embedded below.
With more than 25 million members in the United States, Canada and Latin America, Netflix, Inc. [Nasdaq: NFLX] is the world's leading Internet subscription service for enjoying movies and TV shows. For US$7.99 a month, Netflix members ... read more »
Powered by VBProfiles