Netflix Inc. came with an objective to achieve when it planned a global expansion. The streaming giant announced the expansion of its services in 130 countries simultaneously a couple of weeks back. Now it is operating in more than 190 countries as it plans to be in all parts of the world by the end of this year. The firm’s user growth was stalled in the domestic market, United States, which is why it opted for a vigorous expansion across the globe. The company wanted to increase its viewer base.
On Tuesday, it is believed that the internet TV provider has reported an increase in its streaming subscribers this quarter. Despite of the fact that Netflix missed to meet expectations for new subscribers in United States, an increase was credited to the global expansion a few weeks ago. The Wall Street Journal reported that there were 5.59 million new streaming subscribers on the platform which surpassed the firm’s own expectation of 5.15 million new subscriptions. The new figures suggest that Netflix will soon be achieving another milestone of having 75 million ‘paid’ viewers across the globe.
The streaming service stated that it expects to add 6.1 million subscribers more in the upcoming quarter. Netflix stocks are known as the hottest in the market whose value is nearly doubled in the past year. The stocks of the company increased by 7 percent in after hours trading when it revealed the information regarding newly added streaming subscribers; yet the profits faced a downfall.
The profits fell due to higher costs for international expansion and the separate content for each region. The streaming giant said that it expects further losses in the international markets and it is all fine as the firm would take time before it reaches a breakeven point and then starts to generate profits from the new locations.
Netflix achieved its overall target as a company but failed to meet the expectations in the United States which was troubling it for a long time. The streaming giant could add only 1.56 million new subscribers whereas it was expected to add 1.65 million streaming subscribers.
Regardless, the firm has good plans for the future. According to the chief content officer of the company, Ted Sarandos, said “There’s a lot of rhetoric going around about how quickly and aggressively people will license. It’s still a very competitive business. People sell their programming to the highest bidder—if we’re that bidder, we’ll get the programming.”