from the streams-of-cash dept.
Netflix said Monday it added some five million new subscribers over the past three months as profits doubled, in a quarterly update that sent shares of the streaming video giant higher.
California-based Netflix ended the third quarter with more than 104 million paid subscribers, with international memberships hitting 52.7 million and overtaking the number of US subscribers.
Net profits meanwhile jumped to $129 million, more than double the figure from the same period a year ago for the video giant known for "House of Cards," "The Crown" and other original shows that are part of its library.
Revenues in the quarter rose 30 percent from a year ago to $2.98 billion, Netflix said.
"We are growing nicely across the world and are on track to exceed $11 billion in revenue in 2017," a letter to shareholders said.
Streaming has entered its profit-maximization period. For audiences, has the bliss point already been passed?
Netflix has continued to add millions of new subscribers, even after it raised prices:
Netflix Inc snagged 2 million more subscribers than Wall Street expected in the final three months of 2017, tripling profits at the online video service that is burning money on new programming to dominate internet television around the world.
The results drove Netflix to a market capitalization of more than $100 billion for the first time. Shares jumped 9 percent to over $248 in after-hours trading on Monday after rallying throughout the month and rising 53 percent last year.
The company has signed up more than half of all U.S. broadband households and is building its customer base in 190 countries by spending billions on programming.
Netflix picked up 6.36 million subscribers in international markets from October through December, when it released new seasons of critically acclaimed shows "Stranger Things" and "The Crown" as well as Will Smith action movie "Bright." That topped Wall Street expectations of 5.1 million, according to FactSet.
Along with 1.98 million customer additions in the United States, the company ended the year with 117.58 million streaming subscribers around the globe, despite a price hike in October.
From a Bloomberg op-ed: "The rapid pace of subscriber additions is impressive, but so is the amount of cash going up in flames."
Your Netflix subscription is about to get pricier.
The popular streaming service announced that it will raise prices across its U.S. plans for new subscribers on Tuesday, and for existing users over the next three months.
Netflix's most popular plan, previously $10.99 a month for two HD streams, will rise to $12.99. The cheapest $7.99 non-HD plan will now be $8.99, while the premium option that allowed four simultaneous streams in 4K will rise to $15.99 per month from $13.99.
Netflix is raising the rates to fund its push into original programming. It was reported by The Economist last year that the company was spending between $12 billion and $13 billion on original programming in 2018, releasing popular films such as "Bird Box" and "Roma" as well as new seasons of TV shows like "13 Reasons Why," "Orange is the New Black" and "Marvel's Daredevil."
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