Netflix surges on massive subscriber growth

  • Netflix surges on massive subscriber growth

Netflix surges on massive subscriber growth

Netflix is planning a new film and television production hub in New Mexico; new research finds that one-third of "gluten-free" foods sold in US restaurants actually contains trace levels of the substance.

In July, when Netflix last reported its quarterly earnings, the company's share price collapsed as subscriber growth appeared to slow. Streaming revenue surged 36%, reaching almost $4 billion in the quarter - a performance that matched Wall Street's forecasts of $4 billion. Earnings jumped to 89 cents per share, well above a projected 68 cents.

The number of both USA and worldwide subscribers grew at a clip over the month, with Netflix adding 1.09 million new subscribers in the USA and 5.87 million internationally.

All told, the Los Gatos, California, company now has more than 137 million subscribers around the world, including 130 million paid members. Analysts were expecting 7.7 million - 1.6 million in the U.S. and 6.1 million internationally, according to Instinet. This means in some quarters we will be high and other quarters low relative to our guidance. "This quarter, we under-forecasted memberships", Netflix said in a letter to shareholders. Netflix said it expects subscribers to grow by another 9.4 million in the fourth quarter, up 13% compared to previous year. It expects too spend $8bn on content this year, far more than rivals Amazon and HBO as the tech giants battle it out with traditional media companies.

The company announced earlier this month that it would build a new production facility in New Mexico as it ramps up original content efforts.

The Netflix executive highlighted the streaming service's varied content palate, with the addition of new animated adult comedies - Disenchantment, from Matt Groening, creator of The Simpsons and Futurama, and Paradise PD, from the makers of Brickleberry, to complement Big Mouth, Bojack Horseman and F is for Family - and its popular romantic comedies, including To All the Boys I've Loved Before, one of the service's most-viewed original films with strong repeat viewing.