Entertainment TV Membership jumps for Netflix

Membership jumps for Netflix

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Netflix says membership has jumped 3.3 million last quarter, crediting original shows such as Orange is the New Black that have been hits with viewers.

The gain in subscribers to its streaming television service was a record high for the historically weak second quarter of the year, and raised the total number of people tuned in to 65.55 million.

Most of the growth came from outside the United States, including in Australia, according to the Northern California-based company, which predicted more than three million more new subscribers would sign on during the current quarter.

Netflix adds 400,000 subscribers
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“We believe the higher than anticipated level of acquisition was fuelled by the growing strength of our original programming slate,” Netflix chief Reed Hastings said in a letter to shareholders on Wednesday.

He touted successful first seasons for Sense8, Marvel’s Daredevil, Dragons: Race to the Edge, and Grace and Frankie.

Updated membership figures were released in an earnings report that showed Netflix topped market expectations with a quarterly profit of $US26 million ($A35.24 million) compared to a net income of $US71 million in the same quarter a year earlier despite revenue climbing.

Netflix shares, which were adjusted for a 7-to-1 stock split, were up more than nine per cent to $US107.55 in after-market trades that followed release of the earnings figures.

Netflix executives forecast the company would operate near break-even financially through next year as it invested in international expansion, where exchange rates and other factors can drag on profit.

“We hope to open the entire rest of the world in 2016,” Hastings said during an earnings interview broadcast at YouTube, noting that China remained uncertain.

“China, again, we still have some things to figure so I suppose that’s possible.”

Netflix is to make its debut in Asia with a launch in Japan by November. It is slated to arrive in Spain, Italy, and Portugal in the final quarter of this year.

Along with investing in supporting more languages and show libraries tailored to various markets, Netflix is making a priority of optimising its service on mobile devices since they are the main tools for accessing the internet in emerging markets, according to the company.

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