On Monday, Video-on-demand service, Netflix, released their second quarter 2017 financial results. The results reveal that the company has surpassed the 100 million subscriber mark, with world wide subscriptions growing from 99 million to 104 million.
Netflix who were anticipating a forecasted 3.2 million rise in global subscription saw their shares surge after the company revealed that global subscriptions had risen by 5.2 million in just 3 months.
Netflix in their finaicial result said that, “Our international segment now accounts for 50.1% of our total membership base. International revenue rose 57% year over year, excluding a -$23 million impact from foreign exchange, while international ASP grew 10% year over year on a F/X neutral basis. International contribution profit of -$13 million vs. -$69 million was better than our -$28 million forecast due primarily to higher-than-forecasted paid members.”
“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,” the company added.
Netflix shares rose more than 10% in after-hours trading following the announcement of its second-quarter earnings.
Company leaders said new content creation was critical to competing against other online rivals such as Amazon and YouTube, as well as traditional television.
They said generating new content also meant streaming services were expanding the size of the overall 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 in a letter to shareholders.
“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.”
The growth helped produce $2.8bn in quarterly revenue, up more than 32% from the same period in 2016.
Netflix said it expected revenue to reach nearly $3bn in the third quarter.
Profits for the three months that ended in June were $65.6m, up about 60% year-on-year.
Company leaders also told investors they planned to continue to invest more in content as the firm grew.