While its subscriber growth slowed in Q1 2017, Netflix ended the period with a total of 98.7 million streaming memberships, consisting of 50.8 million in the USA and 47.9 million internationally.
Netflix (NFLX) is on the verge of surpassing 100 million global subscribers, a testament to how much the video streaming service has changed the entertainment landscape since its debut a decade ago. It's hard to imagine that letting "consumer choose" would result in anything but an overwhelming majority of moviegoers opting to simply watch new release films on the service they're already paying (a much more reasonable fee) for. In that time, Netflix has added 72 million more subscribers.
The Los Gatos, California firm presently has a market value of around $63 billion. Its stock rose $1.90 to $149.15 in Monday's extended trading, even though subscriber growth during the first quarter came in slightly below management forecasts. Other cable channels also are contributing internet-only benefits as more viewers, particularly younger people, avoid traditional TV bundles and subscribe to streaming services preferably.
Netflix's investment in original programming has inspired competing technology companies and TV networks up their spending, creating more competition for attention and eyeballs.
"From this perspective, the platform will have already reached ~40% of their 2Q guide (+3.2M subs), with growth likely somewhat front end loaded due to the early success of "13 Reasons Why"," wrote Janedis, adding that Netflix's content slate looks strong in the back half of the second quarter, with the return of "House of Cards", "Orange is the New Black" and "Master of None".
The model works from a customer viewpoint because it is such a great value, Pachter said.
Since the Google-owned YouTube has a viewership of a billion hours every day. Netflix said it will spend $1 billion marketing in 2017 to bring more attention to its shows. Netflix had previously frozen prices for millions of subscribers at 2014 levels.
Netflix CEO Reed Hastings anticipates the next 100 million subscribers to expand more swiftly than the first 100 million, but he didn't give a particuar schedule during an online video review of the organization's first quarter.