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Netflix Exceeds Everyone’s Expectations

Netflix exceeds expectations

On Monday, Netflix Inc. exceeded everyone’s expectations, even Wall Street’s ones, and added a number of 5.2 million users. Moreover, the company expects an even greater rise mainly because now there are more subscriptions which don’t come from the United States. So, at the beginning of the week, its stock grew with about 10.4%. The shares of Netflix also sky rocketed even beating their all-time high from June 8. According to a letter the company sent to its shareholders, this growing popularity overseas will most certainly bring the first profit for a year from those markets, this year.

Netflix doing better than expected

It all began in June when the foreign subscriptions for Netflix (over 52 million) exceeded those in the United States (over 51 million). This is all most certainly happening because of the company’s hugely-successful original series and movies. Two of those are the highly-controversial but very popular teenager show 13 Reasons Why along with House of Cards’ latest season. The second quarter is usually the most unsuccessful one. However, those two shows alone completely changed the game. According to statistics, the expert prediction for foreign subscriptions was of about 2.59 million. Netflix managed 4.14 million of them, surpassing even the wildest expectations.

The same letter the company sent to the shareholders also said that Netflix is sure that this growing trend will continue. However, it specified that sometimes, the company’s predictions have been a little too bold. This huge success should not come as a surprise. People should keep in mind that Netflix spends about $6 billion each year to create quality content to attract new people and to keep older ones interested. Even if right now its United States growth is a bit slow, Netflix is on a mission to become the most popular movie and TV streaming service in the whole world.

A clear mission

Moreover, the company has begun adding shows in many other languages in order to attract foreign subscribers. So far, the plan is working perfectly. Still, this doesn’t mean that the company doesn’t have any rivals and fierce competition. Let’s not forget the Prime Video service from Amazon and YouTube, which also has some ambitious plans. Time will tell if the service will keep on growing its client base. Or, if this is just a passing trend.

Image source: flickr

About Donna Griggs

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