Netflix today surpassed the 60 million user mark. Of these, 40 million are American citizens and 20 million are international customers. Since the beginning of the year, the service has attracted more than five million new users: 2.3 million Americans, and 2.6 million from other countries.
The company’s revenues grew to $ 1.57 billion, against $ 1.27 billion in the same period last year. The company’s profits, however, shrank in that period from $ 52 million to $ 23 million. This drop may be related to the costs of international expansion.
The announcement leveraged the company’s shares by more than 10%, which indicates that its shareholders are more concerned with the growth in the number of users than with the company’s profit margin. In a note to shareholders, the CEO of the company Reed Hastings said he believed that “growth in the US has benefited from our increasingly better content, including the launch of the third season of House of Cardsand new attractions Bloodline and Unbreakable Kimmy Schmidt“.
Netflix’s main competitor to HBO, despite its very different cost structures: although the two companies have almost the same gross revenue, HBO has twice as many users and profits seven times greater than Netflix.
Movies Streaming Netflix