This was higher than the company's quarter guidance, due primarily to the timing of content spend.
Netflix has been on a roll in adding new subscribers because back in Q4 2017, they managed to add 8.33 million, and in their latest quarterly report they have revealed that they have managed to add an additional 7.4 million.
"Whether or not our share of that [online viewing hours] grows or shrinks is really up to whether or not we produce great content, market that well, serve it up beautifully, and if we do that well, earn more of consumers' time then we continue to grow and if we get lazy or slow we'll get run over just like anybody else", said Netflix CEO Reed Hastings in a pre-recorded interview. According to the 7Park report, 80 percent of USA subscribers to Netflix viewed licensed content over Netflix's original shows, and 42 percent of Netflix subscribers watched mostly licensed content (95 percent or more of their total streaming). The average cost of a Netflix membership rose 14 percent during that time, and customer ranks swelled to 125 million.
The forecast came after the streaming service reported the fastest revenue and subscriber growth in its history.
For the second quarter, the company sees a small slowdown in the number of additions, expected at 6.2 million, including 1.2 million in the United States and 0.5 million global. Netflix had said it expects to grow to 60 million to 90 million members in the US over time and that it would spend $8 billion on content and $2 billion on marketing this year. That includes "O Mecanismo", which is on pace to become one of the service's most-viewed original series in Brazil, and Spanish language heist thriller "La Casa de Papel" the most-watched non-English series ever on Netflix. James Hambro & Partners acquired a new position in shares of Netflix in the fourth quarter valued at about $106,000.
The company's original TV series are still ongoing and they have also added a few more.
Admittedly, Netflix's push for original content has paid off in some part - for the 12-month period ending September 2016, only 12 percent of all US Netflix streams were for original content, which ramped up to 20 percent in the following period.
"Our movement to news has been misreported over and over again", Sarandos said.
Hastings further distanced Netflix from the data privacy concerns surrounding tech companies at the moment by suggesting his company is more of a media company - more in the same vein as say, The Walt Disney Co. "Topical interview shows, absolutely, but keep in mind, those are entertainment".
With $10.99 as a price tag for domestic services and a rough average circling $9 overseas, the analyst can not ignore that the company is set to keep burning cash. Wedbush restated an "underperform" rating and set a $60.00 price objective on shares of Netflix in a research note on Tuesday, January 10th. A trend of Netflix well outpacing its subscriber forecasts is emerging. Executives said on a conference call that the "new wave" of operator partnerships was a consistent shift across all geographic markets. "Defining distribution by what room you see it in is not the business we want to be in", he said, according to GameSpot sister site CNET. "It definitely helps to have confidence on the growth of the internet".