Published: Wed, April 19, 2017
Markets | By Erika Turner

Netflix about to cross 100-million subscriber mark

Netflix about to cross 100-million subscriber mark

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.

Over the past ten years what really did it for Netflix was the emergence of phones and tablets that enabled people to watch videos with mobility, said Wedbush Securities analyst Michael Pachter.

Netflix needs to add millions of subscribers every quarter to help pay for the billions of dollars the company spends making TV shows and movies or licensing programs from others. Although it was predicted to hit the mark back in the first quarter of 2017 the website has finally arrived to its goal. Netflix ended March with almost 48 million subscribers outside the U.S.

Netflix said it expects to add 3.2 million subscribers in the second quarter-more than analysts forecasted-thanks, in part, to popular new programming that premiered near the end of the first quarter, like 13 Reasons Why and Dave Chappelle: Collection 1, which is Netflix's most-viewed comedy special ever. The online streaming giant also confirms that it's made a deal with Sandler to release four more films exclusively with Netflix.

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The Los Gatos, California firm presently has a market value of around $63 billion. "If you don't own it because you think Netflix was spending too much money to invest in said growth, you still feel the same way".

Netflix's earnings exceeded expectations, while slower-than-expected subscriber growth was offset by a better-than-expected forecast for subscriber growth in the current quarter. HBO has 134 million subscribers worldwide, including viewers paying for an internet-only version of the channel that was inspired by Netflix's success. "Considering the new seasons of House of Cards and Orange is the New Black are scheduled for release later this quarter as well, we believe guidance could prove conservative".

The inclination has presented Netflix with more rivalry in the contest for home entertainment budgets.

"The model works from a consumer perspective because it is such a good value", Pachter said. Analysts predict Netflix will make $482 million on revenue of more than $11 billion for the entire year.

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