Netflix soars as blistering subscriber growth restores faith

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Only about 1 million of the almost 7 million new subscribers came from the United States.

The Netflix logo is pictured on a television in this illustration photograph taken in Encinitas, California, U.S., January 18, 2017.

Shares have surged more than two-thirds this year and closed on Tuesday at $346.40 in NY, valuing the company at nearly $154bn.

"It will be interesting to see how much further Netflix's spending on originals steps up from here", Tim Nollen at Macquarie wrote. In the third quarter previous year, Netflix added 5.3 million subs.

"We don't believe in 'open-ended growth stories.' But, darn, NFLX is about as close to one as you can find in today's market", RBC analyst Mark Mahaney said in a note. "It's not going to be overnight where we're going to get to higher numbers" added chief financial officer David Wells.

Netflix, traditionally the first tech company to report its earnings each quarter, said revenue grew 34% in the quarter, in line with analyst estimates.

While Netflix doesn't provide a country specific breakdown of its subscriber base, the company disclosed in a letter to its shareholders that it has added 5.1 million paid worldwide subscribers during the quarter ended September 30, taking its paid global base to 73.5 million subscribers. "That's a really good number for a market that's this mature".

Total revenue rose to $4 billion, in line with analysts' expectations, from $2.98 billion a year earlier. While the company reports a net profit, it spends more than it takes in and borrows frequently to finance its programming budget.

Media companies that once sold programs to Netflix for hundreds of millions of dollars are now building their own on-demand services to compete head on.

Rival Amazon, which launched its Indian studios past year, plans for 17 original programs, including shows in Hindi, Tamil and Telugu.

Most analysts blamed Netflix's disappointing second quarter on a light programming slate.

There is more uncertainty ahead as competition moves in: Apple has been beefing up its offerings, and Disney is expected to debut its much-anticipated direct-to-consumer service next year.

Is Netflix anxious about competition yet?

"We are just getting started in India".