Netflix Approaches To Hit 100 Million Subscribers

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This coming weekend, it is about to have even more reasons to celebrate as it expects to hit the 100 million subscriber mark. Because of this change in timing, Netflix guided for strong subscriber adds in the second quarter, including 850,000 domestic adds and 2.8 million worldwide adds, both of which were higher than Graham's previous estimate.

In global markets, Netflix expects to add 2.60 million subscribers, above the average estimate of 2.09 million.

The Netflix website and logo are displayed on laptop computers.

Netflix, which has been rapidly expanding globally as its business in the US slows, predicted that profit will drop in the second quarter as the company spends more on new series and movies. For example, its show House of Cards, which was debuted previous year in first quarter, was shifted to second quarter, which is the reason for their lower-than-expected subscriber growth.

Wedbush Securities analyst Michael Pachter shares that over the past ten years, "what really did it for Netflix was the explosion of phones and tablets that allowed people to watch video everywhere". "We are super excited".

The Los Gatos, California-based company said revenue rose 34.7 percent to $2.64 billion in the quarter.

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In North America, key releases this past quarter included A Series of Unfortunate Events, a dark comedy, Santa Clarita Diet, a "zom-com" starring Drew Barrymore, and Ultimate Beastmaster, Netflix's first competition show that pits athletes from around the globe against a fearsome 600-foot obstacle course.

Chief Executive Reed Hastings urged investors to look at its growth over time rather than quarter-by-quarter fluctuations.

Netflix reiterated that it has no plans to enter the live TV market, and does not expect to be negatively impacted by growing live OTT video options. Management spent time discussing the increasing competition in Internet TV, including the news that Amazon will take over Twitter's role in streaming the Thursday night National Football League games. Both Amazon and Netflix have also been investing heavily in original programming to win subscribers to their on-demand video services. In the first quarter of 2017, it added $2.5bn of revenue, in addition to attracting 5 million new members, bringing the total to 98.75m.

"The company needs to plan for a future in which its USA business is virtually saturated, and overseas growth starts slowing", said Paul Verna, eMarketer principal analyst focused on digital video.

"We definitely see a big opportunity around the world", Hastings said in an interview with analysts that was posted on YouTube. Past year the firm spent a similar amount on marketing across its entire operation.