Netflix Subscriber Growth Soars to All-Time High
As Gossip Girl's Erik Van Der Woodsen said years ago, "nobody watches TV on a TV anymore," and it seems that he's right... considering that video streaming has become the new norm. The quality of Netflix original programs and streaming services has not been lost on people lately, and it has reflected back on the company with good results.
Netflix came off 2014 with its best quarter as the company accelerated in its international expansion as its original programming hooked millions of subscribers on its online streaming service.
With over 13 million subscribers worldwide in 2014, the last quarter is responsible for the 4.3 million that is responsible for its soaring stock prices.
According to USA Today, the fourth-quarter growth report has met expectations and set the stage for the company to surpass its 60-million members soon.
Company CEO Reed Hastings said in a statement that, "Progress has been so strong that we now believe we can complete our global expansion over the next two years,"
Forbes also reported that investors have been eyeing Netflix subscriber growth closely and during the company's reported third-quarter earnings when they had a lower-than-expected subscriber growth, shares plummeted to as low as 25%.
However, with the surge in the last quarter of 2014, earnings from the company rose to a new quarterly high of $83.4 million, a 72 percent increase from last year. This includes a one-time gain of $39 million due to the resolution of tax audit. This drew good reviews from investors as stocks surged to nearly 16 percent in their extended trading.
With the positive outcome, Hastings, expects to complete the international expansion by 2017 and is now planning to help finance its market to gain potential entrance into China.
Other than that, ABC news also noted that the company is pouring more money to invest in original programming to maintain its lead from other streaming services that included YouTube, Amazon, and HBO.
More than 20 original series will be released in 2015, including a new "Orange is the New Black" season, and a "Crouching Tiger, Hidden Tiger" sequel. Other anticipated shows include the return of "House of Cards" on February 27, while a new series from Tina Fey called "The Unbreakable Kimmy Schmidt" will be aired on March 6. Finally, a new drama will wrap off the first quarter with "Bloodline" to be released on March 20.
Netflix is also going to begin streaming controversial film, "The Interview" on Saturday. The movie that starred Seth Rogen and James Franco wasn't released in major theaters due to terrorism threats.
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