Internationally, Netflix added 5.46 million subscribers, while in the U.S. it gained 1.96 million.
The strong subscriber growth came in well ahead of Wall Street's estimates, helping send Netflix stock up 6% in after-hours trading Monday. While none moved more than 1 percent, the gains marked a positive start to earnings seasons for a sector that's been under pressure in recent months.
"I don't even think that this can be a matter", claimed analyst at Elazar Advisors, Chaim Siegel. "That's what our brand is about, so we're going to continue to expand the relevance of a commercial-free service around the world and make that so popular that consumers are very used to and appreciate Netflix", he said.
During the first quarter, global net adds totaled a new Q1-record of 7.41 million, up 50% year over year and ahead of the firm's 6.35 million forecast. Netflix topped and said it'd bring about 6.2 million additional customers in April through June, 1 million longer than analyst predictions. BMO Capital Markets reissued a "hold" rating and issued a $310.00 target price on shares of Netflix in a report on Monday.
Revenues for 2018's first three months increased 43 percent from a year ago, to $3.7 billion. Netflix also adds that the Spanish-language thriller Money Hesist "became the most watched non-English series on Netflix ever". It attributed the rise to a 25% increase in average paid streaming memberships and a 14% rise in average selling price. Earlier this week, the companies announced that Comcast would bundle Netflix in to its cable subscriptions, offering yet another entry point for Netflix to ferret up potential consumers that haven't quite cut the cord yet but still might be interested in Netflix's content. Netflix normally carries a price tag of around $13.99, but the companies have not said what its price will be as part of a cable bundle yet. "Posts spend is having a direct effect on its own subscriber growth".
Popular shows such as Stranger Things, House of Cards, and Black Mirror have enabled Netflix to keep attracting millions more subscribers each year while cultivating enough customer loyalty to be able to gradually raise its prices. Those hopes are a big reason why Spotify has a market value of $26 billion two weeks after its debut as a publicly traded company. Those are expected expenses, which reflect the cost of Netflix-streamed TV series and movies spread out over perhaps many years. In the USA, the company added 1.96M subscribers, greater than its guidance of 1.45M and estimates that called for 1.48M.
Netflix late this afternoon released its earnings report for the March quarter and the streaming giant delivered yet again. Revenue rose 40.3 percent to $3.7 billion from $2.64 billion.