The online TV network recently made the announcement of its quarterly earnings on Wednesday 14th of October. The subscription that rose by a dollar for new customers are still growing according to reports and the company should definitely be happy about such news.
Netflix Inc. made the announcement of its subscriber rising in the US to 880k and internationally 2.74 million subscribers, a huge number. The company’s Total membership is to 69.17 Million and it is expected to increase even more. The multinational entertainment provider is planning to focus on its international membership growth this current quarter.
With the recent expansion of the streaming services to Japan in the third quarter and expectations to expand to Southern Europe in the its fourth quarter will play a critical role in international subscription growth. In japan, the management made a decision to increase the price of the fresh content as well as give the choice of local content on the streaming service. It has partnered with Fuji Media in order to generate original content for the Japanese subscribers. The plan to enter Korea in 2016 will also contribute to the growth. If Netflix is able to sustain its expected international growth, it will be able to send a clear message to all the competitors in the market.
Netflix TV shows have gained worldwide popularity and attention; the success is proven by shows getting 34 nominations just this year. The high quality content the VOD delivers to the customers is a huge reason for the success of the business. Complete globalization by the end of the year is one of the aims of the online streaming company, capturing the Asian market including India, Korea and China which will contribute to subscriber growth as well as revenue.
China and India both are highly populated countries, naturally the higher the population the more chances of a bigger number of global subscribers. FY of the three quarter that the company announced, Third quarter’s revenue was around $1.74 billion. The expectation the company has global subscription growth is around 3.5 million in the fourth quarter which was 2.43 million in the fourth quarter of 2014. It has invested a huge sum of money for expansion and international growth and has even lost at certain occasions. It will launch this month in Portugal, Spain and Italy catching the European market now. The slow local growth of membership will lead the company into a loss; predictions are that it will be $49 million this quarter even though it was $74 million in the last one.