Netflix says it now has 104 million subscribers worldwide

Netflix says it now has 104 million subscribers worldwide

Netflix shares surged on Monday after the firm said it now has about 104 million subscribers, a larger-than-expected number that boosted its revenues.

The firm reported $2.8bn in quarterly revenue, up more than 32% from the same period in 2016.

It said it expects revenue to reach nearly $3bn in the third quarter.

The firm’s share price jumped more than 10% in after-hours trading.

Netflix said it had quarterly profits of $65.6m, up about 60%.

The company added about 5.2 million members during the quarter, most from overseas.

International members now account for about half of Netflix subscribers, the firm said.

The firm also said it expects international members to help boost profits for the year – a first for that part of the business.

The gains are a sign that investment in new shows such as Stranger Things, Cable Girls and 13 Reasons Why is paying off, Netflix leaders wrote in a letter to shareholders.

They also made the case that such investments are critical to Netflix’s ability to compete against rivals such as Amazon and YouTube, as well as traditional television, arguing that new content expands the market.

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

“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.”

Source: BBC News

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