Netflix grows to 69 million members

October 14, 2015
Netflix said it added 3.6 million customers over the past three months as it readies launches next week for Spain, Italy and Por
Netflix said it added 3.6 million customers over the past three months as it readies launches next week for Spain, Italy and Portugal, and predicted it would end the year with 74 million

Streaming television giant Netflix said Wednesday its global membership grew to 69.17 million as it gears for further expansion.

But Netflix's quarterly update, with results which fell short of most forecasts, pulled its shares down heavily in after-hours trade.

Shares slid 6.9 percent to $110.23 in electronic trades following the results.

Netflix said it added 3.6 million customers over the past three months as it readies launches next week for Spain, Italy and Portugal, and predicted it would end the year with 74 million.

Netflix, now available in more than 50 countries, has announced it would launch soon in South Korea, Singapore, Hong Kong and Taiwan, and has an ambitious goal of being in 200 markets in the coming years.

The US giant first made its debut in Asia earlier this year launching service in Japan.

"We remain on track to become global by the end of 2016," said a quarterly letter from chief executive Reed Hastings and finance chief David Wells.

"While global growth was as we expected, our forecast was high for the US and low for international."

Netflix added 880,000 new US members in the quarter and 2.74 million in other markets.

The rapid expansion is likely to impact the bottom line at Netflix, which is leading the market for Internet-based television that can be streamed on demand.

The company said that it expects "to run around break-even through 2016 and to deliver material profits thereafter."

For the past quarter, Netflix posted a net profit of $29.4 million on revenues of $1.7 billion. While revenues grew 23 percent from a year ago, profits were halved.

Netflix raised prices in the US and several other countries in the past week, saying it was needed "to improve our ability to acquire and offer high quality content."

It has been expanding its original content as it faces increasing competition from rivals such as Hulu, Amazon and HBO.

Netflix executives, believe that "linear networks that embrace on demand and Internet delivery as we have, will become more valuable and will experience renewed growth," the letter said.

"The secular shift to on-demand consumption is best described as 'consumers evolving vs. old habits' rather than 'Netflix vs. traditional media.' We're all racing to fulfill consumer desires."

Explore further: Netflix has its eye on four new markets in Asia for launch next year

Related Stories

Netflix expands to Spain, Italy, Portugal

September 30, 2015

US film and television-streaming giant Netflix said Wednesday it will launch in Spain, Italy and Portugal in late October, expanding its global drive to compete with traditional channels.

Netflix stock lifts on China rumors

May 15, 2015

Netflix shares surged Friday after news reports that the streaming television giant was in talks to begin operations in China.

Netflix to launch in Japan on September 2

August 4, 2015

Netflix will launch its streaming television service in Japan on September 2, the latest stop in its mission to be a global entertainment powerhouse, it said Tuesday.

Recommended for you

What happened before the Big Bang?

March 26, 2019

A team of scientists has proposed a powerful new test for inflation, the theory that the universe dramatically expanded in size in a fleeting fraction of a second right after the Big Bang. Their goal is to give insight into ...

Cellular microRNA detection with miRacles

March 26, 2019

MicroRNAs (miRNAs) are short noncoding regulatory RNAs that can repress gene expression post-transcriptionally and are therefore increasingly used as biomarkers of disease. Detecting miRNAs can be arduous and expensive as ...

Can China keep it's climate promises?

March 26, 2019

China can easily meet its Paris climate pledge to peak its greenhouse gas emissions by 2030, but sourcing 20 percent of its energy needs from renewables and nuclear power by that date may be considerably harder, researchers ...

In the Tree of Life, youth has its advantages

March 26, 2019

It's a question that has captivated naturalists for centuries: Why have some groups of organisms enjoyed incredibly diversity—like fish, birds, insects—while others have contained only a few species—like humans.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.