We need your help now
Support from readers like you keeps The Journal open.
You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.
If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.
Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
By continuing, you are indicating that you accept our Terms of Service and Privacy Policy.
NETFLIX SHARES RACED higher in trading as the streaming television giant reported better-than-expected gains in its global subscriber base and a quarterly profit that nearly tripled from a year ago.
Netflix has been on a tear with original programs such including The Crown and Stranger Things.
Netflix shares hit a record high during the trading day, with a leap after the earnings release lifting the California-based company’s overall value above $100 billion for the first time.
In its fourth quarter report, Netflix said it added 8.3 million new subscribers to bring its total paid membership base to 110.6 million.
Netflix said it had added 24 million subscribers over the course of 2017.
Net profit in the quarter surged to $186 million from $67 million a year earlier as the leader in streaming video saw growth ramp up in many parts of the world. Revenue for the quarter rose 33% to $3.3 billion.
“We had a beautiful Q4, completing a great year as internet TV expands globally,” said a Netflix letter to shareholders with the quarterly report.
In 2017, we grew streaming revenue 36% to over $11 billion, added 24 million new memberships (compared to 19 million in 2016), achieved for the first time a full-year positive international contribution profit and more than doubled global operating income.
Reuters reports that the company has signed up more than half of all US broadband households and has a customer base in 190 countries.
As it has shifted more to original content, Netflix has been winning awards for its shows and has helped shake up both the television and film industries with its deep pockets.
By delivering online, Netflix is available in some 200 markets worldwide, with the goal of being a global TV network, and now produces programs in several languages.
Netflix said it expects to spend between $7.5 billion and $8 billion on content for 2018.
“We believe our big investments in content are paying off,” the statement said.
“In 2017, average streaming hours per membership grew by 9% year-over-year.”
During an “interview” style earnings call — a change of pace for Netflix — chief executive Reed Hastings and other executives were heavily questioned about how spending on shows weighs on profit.
“We are choosing a business strategy that essentially has us take all of our domestic profit and put it into international expansion,” Hastings said.
“We think that is the right move, but it definitely takes a strong stomach on the part of investors.”
He noted that Netflix is “very comfortable” with its current subscription price as well as its tactic of putting global expansion over short-term profit.
“Our content is getting better; our service is getting better,” Hastings said.
“Of course, the larger we get the harder it is to grow, and the more time that goes by the better our competitors get.”
© – AFP 2018 with reporting by Rónán Duffy
To embed this post, copy the code below on your site
Worth every penny!
I Pay 10.99 and its worth every penny.
@Brian Power: On can use an android box and get all that and dramatically more for…zilch.
@Boo!: Well I could save on my food and clothing bills by stealing those too
@Chucky Arlaw: your name doesn’t help when trying to take he moral high ground…but I agree with you. People boasting about stealing content is ridiculous, it’s the only type of theft they seem to find acceptable.
@Boo!: if everyone was a tight arse like you there would be no content to steal in the first place.
@Boo!: until you turn the sh*tbox on one day and it doesn’t work or the site is down and there is f all you can do about it
@Chucky Arlaw: showbox is legal and free as are quite a few Android movie apps
Yap .. sky seems a bit overpriced when you see what Netflix produce
It’s the only thing on with a few decent things on it.sky tv should be ashamed of themselves with the amount of channels and nothing but dirt and repeats on it
Traditional telly is all but dead, haven’t tuned in any channels on the TV in 2 years. Netflix makes some sublime programmes, and can throw money at radical ideas and get them made, even with small viewership. The result is we get awesome stuff to watch. Throw youtube into the mix and you have all your viewing needs. Youtube is great because people make shows in their own homes about all manner of interesting topics. Good equipment is so cheap, meaning high quality content is produced. I came across a channel called Techmoan about 6 months ago. It’s basically a guy in his house making videos on retro hifi equipment. Really well put together and supremely interesting. And that’s only one channel on it, it’s really packed with interesting stuff. TV needs to up its game.
@John Smith: Yep. Techmoan is class. Nothing like it on TV.
@Anthony O’Brien:
Quality, isn’t it? I think its basically telly quality, but simply made by a dude with passion for what he loves. And a lot of people love it too.
Should allow access to all regions USA store is so much better than European
@Eddie Mc Keown: The Canadian one is much better than the USA one.
What’s going to be really exciting is when Netflix start getting the rights for the like of premier league football. Sky won’t stand a chance.
@Darren Bates: Facebook will get it first
@Darren Bates: Then watch the subscription price shoot up. Be careful what you wish for. The rights were 6 billion pounds the last time they were sold.
Cancelled my NTL/ Virgin only have a sairview box and Netflix very rarely watch TV
I got rid of Virgin TV 8months ago now and haven’t looked back! Saving a fortune and don’t miss “normal TV” at all! Content that is available for streaming is so much better! Google chrome cast and away ya go!
Would love to see sky fail because of netflix. Netflix is such good value for money, unlike sky.
It’s a class programme and it’s getting a lot of awards
Well worth the money
Get supernatural added and I be a happy camper
We have never had Sky. Only free to air channels. But Netflix is great. Love watching old Friends episodes. I often get an idea to watch an old movie again with the kids eg Dumb and Dumber.. Where can i watch these if they are not on Netflix or You Tube?????
@Sinead Hanley: google play
Netflix is in serious trouble due to the rights owners of the majority of their content set up their own services. Disney are going to remove all of their content as soon as they can. That includes Fox produced stuff. They will be left with only Netflix produced material and independent produced material.
@Kal Ipers:
Fine by me, means they have to make even better stuff. This is the kind of competition we need.
110 million subscribers and 330 million viewers…..
So why are they putting up their prices. Iv just had an email saying that it’s going up to €13:99
have your say