The latest business news around the world. Written by Market Business News's very own editorial team to deliver reliable, up to date, and honest news.

Netflix gained 5.2 million subscribers in the second quarter of 2017

0

Netflix reported a much better-than-expected increase in new subscribers for the second quarter, up 5.2 million, beating expectations of a 3.2 million increase.

Netflix now has around 104 million subscribers.

The video streaming giant gained 1.1 million new US subscribers in the quarter and 4.1 million new subscribers from markets overseas. Its international segment  now accounts for more than half of its total membership base, with revenue from its international segment up 57% year over year.

For the first six months of the year, net adds are up 21% year-on-year to 10.2 million.

netflix imageNetflix reported quarterly profits of $65.6m, up about 60%, on revenue of $2.8 billion.

The company’s share price surged by more than 10% in after-hours trading.

In a letter to shareholders Netflix leaders wrote that the strong growth in membership is a sign that investment in new shows such as 13 Reasons Why, Stranger Things, and Cable Girls is paying off, adding that it’s necessary for the firm to continue making investments in original programming to compete against rivals such as Amazon, as well as traditional television.

“The largely exclusive nature of each service’s content means that we are not direct substitutes for each other, but rather complements,” the letter said.

“The shift from linear TV to on-demand viewing is so big and there is so much leisure time, many internet TV services will be successful,”

Netflix expects positive international contribution profit for the full year 2017​.

The company said in its earning report:

“We’re forecasting Q3’17 international net adds of 3.65 million. We are making good progress with our international expansion as improving profitability in our earlier international markets helps fund significant investment in our newer territories. As a result, we expect positive international contribution profit for the full year 2017​, at current F/X exchange rates. This would mark the first ever annual contribution profit from our international segment.”