Worldwide territories remain the key to the company's future, and accounted for 84 percent of Netflix's new customers in the third quarter. Further, it issued aggressive guidance for Q4 2018, saying it expected an additional 9.4 million subscribers. In all, Netflix added nearly 2 million more subscribers than the 5.09 million Wall Street expected.
Netflix held its quarterly earnings report earlier this week, recording a record high number of subscribers, which assuredly made investors happy. During that quarter, Netflix had a dearth of new programming that resonated with viewers the way hits like House of Cards and Stranger Things had done in the past. By the end of the year, Netflix expects to expand that base to 146.5 million.
The streaming behemoth said Tuesday that its subscriber base grew by almost 7 million in the quarter, led by the addition of 5.9 million new users overseas. Said eMarketer media analyst Paul Verna.
Netflix released a series original movies as part of its "Summer of Love" over the past few months, including "Set It Up", "The Kissing Booth", "Like Father", "Sierra Burgess Is a Loser" and the aforementioned "To All the Boys I've Loved Before". Netflix first signed a carrier billing in India with Vodafone past year; postpaid customers could pay for Netflix on their monthly bills.
Netflix will then segue to a raft of high-end film offerings that spell its most serious push into Hollywood's competitive Oscar season.
That's because at its current voracious pace of spending on original content such as House of Cards, Netflix is running the risk of ballooning debt and surging interest payments that could surprisingly hammer the bottom line.More news: Get behind nation's second largest breast cancer fundraiser
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The additions helped lift profit more than threefold to 89 cents a share, beating the 68-cent average of analysts' estimates. "Even the USA number was better than I thought it would be".
In a letter to shareholders, Netflix said it saw "strong growth broadly across all our markets including Asia". Netflix has tripled in value over the past three years by posting record subscriber growth that consistently exceeds Wall Street forecasts. "That's a really good number for a market that's this mature". Even before the after-hours surge on Tuesday, the shares were up 80 percent this year.
Is Netflix anxious about competition yet?
At the same time it faces competition from the likes of Amazon and Disney.
"That's going to make it exciting for us, great for consumers and incredible for producers, " he said.