Netflix subscriber growth beats on strong original content

Lost in Space 2018 Molly Parker

Looking to the current quarter Netflix expects to add another 6.2 million net subscribers and is looking at revenues of $US3.9 billion as the benefits of last year's price rises flow through to the bottom line.

This was a growth of 43% year-over-year - the "fastest pace in the history of our streaming business". Net salary rose to $290.1 million, or 64 pennies for each offer, in the quarter finished March 31 from $178.2 million, or 40 pennies for every offer, a year sooner.

"You have to earn it first by having spectacular content that everybody wants to see", Netflix CEO Reed Hastings said Monday during a discussion of the company's first-quarter results. That number exceeds analysts' forecasts of 6.32 million and takes Netflix's total subscriber base to 125 million.

"We strive to entertain and to bring joy to people across the world through fantastic stories".

Netflix has beat subscriber growth expectations once again. "Whether our share grows or shrinks is really down to, do we make great content, market it well, serve it up beautifully?" he said.

"Given that the vast majority of Netflix's content (including the bulk of its "originals") is licensed; so long as that is true, Netflix's content spend is likely to grow in lock step with its revenue growth".

Unlike other tech giants, the streaming video company doesn't sell ads, and is much more of a media company, he argued on a conference call following Netflix's first-quarter earnings report. Netflix's revenue for the quarter was up 35.9% compared to the same quarter previous year.

The slate included science fiction series "Altered Carbon" and Marvel action drama "Jessica Jones". Finally, Assenagon Asset Management S.A. bought a new stake in Netflix during the fourth quarter worth approximately $45,695,000.

The company's original TV series are still ongoing and they have also added a few more.

"We will continue to celebrate our films and filmmakers at other festivals around the world but unfortunately we will have to sit out Cannes for now so that our growing French membership can continue to enjoy our original films". But there's at least one area it's not planning to expand into: news programs. "Topical interview shows, absolutely, but keep in mind, those are entertainment".

Netflix completed its price adjustment during this past quarter, resulting in 12% ASP growth for the domestic segment.

At the same time, Netflix is expanding into cable bundles and recently announced a new offering with Comcast, in addition to bundles with Sky, T-Mobile and Altice.

"These relationships allow our partners to attract more customers and to upsell existing subscribers", the company wrote.

Don't call Netflix (NFLX) a tech company.

He added: "I'm very glad that we built the business not to be ad-supported, but to be subscription", Hastings said.

With its Q1 results, Netflix continues to solidify its spot as the number one streamer in the USA and the world.