Bolstered by the success of its own original shows like Stranger Things, streaming powerhouse Netflix saw subscriptions grow 50pc.
The California-headquartered streaming giant Netflix is growing fast around the world and reported that it added 3.2m international subscribers and 370,000 domestic US subscribers in the third quarter.
Overnight shares in Netflix increased 20pc, adding nearly $10bn to the company’s market cap.
‘The growth of internet TV globally has ushered in a new golden age of content, with consumers everywhere enjoying unprecedented access to amazing amounts of high quality programming’
– REED HASTINGS
The company, which began mailing DVDs to movie fans, is now thriving on the back of original content including Stranger Things, Narcos, The Get Down, Orange Is The New Black, House of Cards and movies including the story of besieged Irish soldiers in The Siege at Jadotville.
A new golden age of content
For the third quarter of 2015, Netflix reported that global streaming revenue exceeded $2bn for the first time – up 36pc year-on-year.
Netflix CEO Reed Hastings told shareholders that the company intends to press on with its original content strategy and that it has $6bn on its P&L to fund original content.
“We are now in the fourth year of our original content strategy and are pleased with our progress. In 2017, we intend to release over 1,000 hours of premium original programming, up from over 600 hours this year,” Hastings said.
“The internet allows us to reach audiences all over the world and, with a growing base of over 86m members, there’s a large appetite for entertainment and a diversity of tastes to satisfy. We are fortunate that our internet-centric, on-demand, subscription-only business model allows us to support programs for both mass and niche audiences alike.
“Our personalisation algorithms help us promote the right content to the right viewers. And since we are not shelf-space constrained nor reliant on advertising, we have the luxury to tell all kinds of stories in less traditional ways. The growth of internet TV globally has ushered in a new golden age of content, with consumers everywhere enjoying unprecedented access to amazing amounts of high quality programming,” Hastings said.