It seems that Netflix Inc is incredibly committed to growth, as it was reported to have added a third more subscribers than targeted in the second quarter of this year.
This s extremely good news for the California-based company, because it led to an increase in its shares by 9.4 percent.
All this probably stands as proof that the money invested in original movies and television programs was well spent.
The video streaming service has been more successful every year, because the number of customers is constantly on the increase. This made it possible for the company to surpass the profit that they predicted at the beginning of the year.
It was reported that there are 3.3 million more subscribers in the second quarter, even if the company was hoping for at least 2.5 million. The company’s representatives said that this is thanks to their original shows, such as “House of Cards” or “Orange is the New Black” which are two extremely well-rated TV-series.
In addition to all that, Netflix seems to have become available in more parts of the world, which contributes both to its finances and to its popularity.
“Subscriber growth was huge domestically and internationally. The technology, the breadth of content and the quality of content is really working in their favor,” said Barton Crockett, who is an FBR Capital Markets analyst.
According to representatives of the company, this expansion is something we are going to see more of, because the company is planning to make its services available in 200 countries by the end of next year, China included. They are also planning to hit Japan first, followed by Spain, Portugal and Italy.
The international market brought the company an additional 2.4 million customers. Nowadays, an impressive number of 65 million customers is recorded in Netflix’s database.
This obviously led to an increase by almost 10 percent in its shares within a very short period of time. It was reported that more than 10 brokerages boosted their price target on the stock market. Among them, Pivotal research was the most daring, coming up with a price target higher by 58 percent than the stock’s close on the 15th of July, of $98.
Image Source: techweekeurope
Share this:
