Netflix projects a rosy picture as it adds 5.2m subscribers in Q2

18 Jul 20179 Shares

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Netflix CEO Reed Hastings at Mobile World Congress 2017. Image: Catwalker/Shutterstock

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Netflix membership momentum continues, fuelled by investment in original programming.

Streaming and internet TV giant Netflix added 5.2m subscribers in the second quarter.

Of this, 600,000 were in the US and 3.2m were international.

‘We strive to be bold in our programming choices and financially disciplined, so we can keep being bold’
– NETFLIX

The company said it achieved near perfect parity between its domestic US audience and its international subscriber base, the latter of which now stands at 50.1pc of Netflix membership.

“In Q2, we underestimated the popularity of our strong slate of content, which led to higher-than-expected acquisition across all major territories,” Netflix said in a letter to shareholders.

“As a result, global net adds totalled a Q2 record 5.2m (versus forecast of 3.2m) and increased 5pc sequentially, bucking historical seasonal patterns. For the first six months of 2017, net adds are up 21pc year-on-year to 10.2m.”

Camera is rolling

Netflix reported second-quarter revenues of $2.7bn, up from $2.1bn last year, and is projecting revenues of $2.9bn for the third quarter of 2017.

The company, which began by posting DVDs to customers, reported a profit of $66m for the second quarter, up from $41m last year. Looking ahead to Q3, the company is forecasting a profit of $143m.

With CEO Reed Hastings at the helm, the key appears to be Netflix’s focus on original content, which is breaking open new audiences around the world. Earlier this year, the company said that it plans to invest $6bn in original programming in 2017 alone.

The strategy is already paying off.

Last week, the Television Academy recognised 27 Netflix original programmes with 91 Emmy nominations, nearly double last year’s tally.

With five of the 14 total best-series contenders (Stranger Things, The Crown, House of Cards, Master of None and Unbreakable Kimmy Schmidt), Netflix had the most nominated series of any network.

During the second quarter, Netflix premiered 14 new seasons of original series, 13 original comedy specials, six original documentaries, two original documentary series, nine original films and seven seasons of original series for kids.

“We strive to be bold in our programming choices and financially disciplined, so we can keep being bold. Every show has passionate fans and committed talent striving for excellence,” Netflix said.

Netflix CEO Reed Hastings at Mobile World Congress 2017. Image: Catwalker/Shutterstock

Editor John Kennedy is an award-winning technology journalist.

editorial@siliconrepublic.com