Netflix is all set to hit a major milestone this weekend

Andrew Cummings
April 24, 2017

Although Netflix doesn't reveal the number of subscribers by country, Roy Morgan estimates 5.86 million Australians aged 14 and over have access to an SVOD service through 2,268,000 household subscriptions.

This wasn't Netflix's (NFLX) best quarter for subscriber growth, but the popular streaming service doesn't appear overly anxious.

Netflix's subscriptions range from $8 to $12 per month, with the most popular option at $10.


Netflix on a tablet, in North Andover, Mass. Netflix is about to hit 100 million subscribers for the first time, hitting a major milestone that underscores how much its video streaming service has changed the entertainment landscape since its debut a decade ago. "But Netflix clearly had a vision before those devices became so ubiquitous". However, investors have been closely watching for signs of a slowdown in growth as the company reaches almost 100 million subscribers.

"The thing is, everybody watches TV, and almost everybody has the Internet", Netflix CEO Reed Hastings said during the company's first-quarter 2017 earnings webcast. "That is not a strategy that we think is smart for us since we believe we can earn more viewing and satisfaction from spending that money on movies and TV shows".

Netflix finished the first quarter of this year with 98.75 million subscribers and predicted that its ranks would crest 100 million this weekend.


The one blemish in the first quarter for the Reed Hastings-led company was that is fell short of forecasts for subscribers growth - although the 4.95 million new subs left it just shy of the 100-million subscriber level. Revenue for the worldwide segment grew 62% year over year, excluding a -$12 million impact from currency, while ASP rose 12% year over year on a [foreign exchange] neutral basis.

In terms of revenue, Netflix saw a 35% year-over-year increase to reach $2.64 billion in the first quarter, meeting expectations, and EPS was $.40 per share, above the $0.37 that analysts expected.

Netflix plans to spend US$1 billion (S$1.4 billion) this year on marketing to attract subscribers.


Netflix Inc (NFLX.O) made a bullish forecast for subscriber additions by mid-year, a positive sign for its push to expand around the world that sent its shares toward an all-time high. It's bullish on adding subscribers next quarter, predicting 3.2 million net additions compared to 1.68 million the year before.

Other reports by iNewsToday

FOLLOW OUR NEWSPAPER