Netflix’s growth continues to accelerate as it is getting a better grip of international markets. The company is adding more than 2 million new subscribers per month and now has 125 million subscribers in total - and far more viewers.
The streaming giant has added 7.4 million new subscribers - 5.46 million of those in international markets - in the first three months of 2018. Revenue grew 43%, which is “the fastest pace in the history of our streaming business”, the company said.
Netflix operates in over 190 countries and will spend $8 billion dollars on content this year. A portion of that budget is earmarked for movies, which appears to be a successful endeavour for the company despite stiff resistance from incumbents.
Earlier this month, Netflix was effectively banned from the competition at Cannes due to new rules. Movie directors such as Christopher Nolan and Steven Spielberg have also publicly commented on Netflix’s business model.
Reed Hastings, CEO at Netflix, addressed the feud in the company's quarterly earnings report and once again repeated the sentiment that the subscribers that pay for continued investments in content should be the first to enjoy new movies.
- “We will continue to celebrate our films and filmmakers at other festivals around the world but unfortunately we will have to sit out Cannes for now so that our growing French membership can continue to enjoy our original films,” said Hastings.
The quarterly reports also confirms that subscribers are staying with Netflix despite price increases in many regions.
More than 300 million viewers?
Netflix is not giving out viewership numbers and has said that Nielsen's estimates are wildly inaccurate so we do not know how successful new TV shows or movies are with audiences.
However, the company recently stated that for every subscription plan there are approximately 2,5x user profiles. If that number serves as a guideline, Netflix should have over 310 million active viewers by now.
The company expects to add an additional 6.2 million subscribers in the second quarter of 2018 and is on pace to become a global powerhouse - if it can crack China.