While the second quarter of previous years has typically been known for slower subscription growth, Netflix seems to have finally bucked the trend. The media streaming giant has announced that it has wildly surpassed expectations by adding 5.2 million subscribers in Q2 2017 — 1.07 million in the U.S. and 4.14 million overseas.
For context, Wall Street analysts had expected Netflix to add around 3.2 million streaming customers in this period, which fell in line with Netflix’s own projections as part of its results from the previous quarter.
Netflix shares jumped more than 10 percent following the announcement, bringing their worth to an all-time high of more than $179 USD per share.
The surge in subscribers can be attributed in part to the debut of the new original show 13 Reasons Why, along with premiere of the fifth season of House of Cards.
“The volume and breadth of our releases in Q2 exemplify our commitment to serve the desires of our diverse and growing audience,” the company wrote in a letter to investors. “We premiered 14 new seasons of global Netflix original series, 13 original 2 comedy specials, 6 original documentaries, 2 original documentary series, 9 original feature films and 7 seasons of original series for kids.”
Their content has been resonating critically, too, with the company racking up 91 Emmy nominations last week — a record for the company and second this year overall only to HBO, which garnered 111 nods.
For Q3 2017, Netflix projects an additional 4.4 million subscribers worldwide, compared to analysts’ estimates ranging between 3.48 million and 4.25 million.
Altogether, Netflix is spending $6 billion a year on content to attract new customers.
Image credit: IMDB
Source: Reuters
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