Netflix Grows By 7 Million Subscribers

Netflix has rebounded quite nicely from the previous quarter and has added 7 million new customers to its service.

The streaming giant added 7 million subscribers in September, which surpassed its predictions of 5 million. Domestically Netflix added 1.09 million customers while it added 5.87 internationally. That brings its total subscriber number to an impressive 137 million (via Deadline).

That wasn't the only prediction Netflix surpassed. Analysts were predicting that they would be in the 69 cents a share area, but Netflix revealed they were at 89 cents a share. Their revenue also went up by 36%, totalling almost $4 billion in the quarter.

As a result of the significant subscriber additions, Netflix's stock went up around 12%, rebounding from the last quarter's stock fall, which ended up lowering by 5% at the time.

Cowen & Co. technology analyst John Blackledge was optimistic heading into the earnings report, saying “We expect solid 3Q18 results, led in part by Netflix adding a record number of Originals programming hours. Our US survey data suggests Netflix maintains its lead in the living room, particularly among younger demos.”

Netflix CEO Reed Hastings is also quite optimistic coming out of the third quarter, and in a letter to investors said they expect to add another 7.6 million paid subscribers in the fourth quarter. Reed did also say that the operating margin for Netflix would tighten in the fourth quarter due to the higher mix of films towards the end of this year and that they would soon only report paid memberships since they can more accurately forecast those.

Hastings also stressed the need for original content, which gives Netflix the ability to not be dependant on studios outside of its control. One particular genre of that original content Hastings spotlighted was their romantic comedies, which have been very successful for the streaming service, especially their recent hit To All the Boys I've Loved Before, which is one of their most viewed original projects.

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“More than 80 million accounts have watched one or more of the Summer of Love films globally and we are already in production for the next set of original rom-coms for our members,” Hastings wrote.

Hastings also spotlighted some of their other original content, including Disenchantment, Paradise PD, Big Mouth, Bojack Horseman, and F is for Family. Other new upcoming Netflix shows include the Chilling Adventures of Sabrina, White Lines, The Kominsky Method, House of Cards Season 6, and Orange is the New Black Season 7, which will be the final season.