Online content streaming giant and studio, Netflix, Inc. (NASDAQ:NFLX) reported a record increase in the number of subscribers. The report came in light of the company’s recent expansion into the overseas market.
Netflix reported that its quarterly profits exceeded the projections made in Wall Street, with the number of Subscribers increasing to a record 60 million. The company announced that it had gained 4.9 million new subscribers within the short period of January to March. Most of the newly registered clients are in the overseas regions and in total all subscribers are reported to have watched over 10 billion hours of shows
The company plans on expanding further to other markets such as Japan in the next quarter. Wall Street was baffled by the online giant’s projection which is an ambitious 2 million new subscribers. The company’s shares recently went up by 13% to close at $475. The company hopes to tap into the global market by the end of 2016, by adding more countries on to its portfolio.
Along with its goal for expansion, Netflix, Inc. (NASDAQ:NFLX) has also experienced positive returns from its studio, through the creation of its own content. Netflix studio productions such as “House of Cards” and “Orange is the new black” have been very pivotal in catapulting the company’s success.
Reed Hastings, the company CEO commented on the company’s performance, citing how well the strategy to produce its own content has paid off. He also said that it doubled up perfectly in marketing Netflix as a brand and as an income generating avenue.
Hastings also acknowledged the company’s rivals who have been posing serious competition in the online market. HBO recently initiated their online content service platform. It has the makings of being a threat to Netflix, but should rather be viewed as a complementary service. Further on, Hasting’s report claimed that other services such as DISH Network Corp (NASDAQ:DISH), Apple Inc. (NASDAQ:AAPL), and Sony Corp (ADR) (NYSE:SNE) should not be viewed as a threat. The idea is that Netflix does not offer live TV services, and the pricing is relatively cheaper.