This quarter, the company expects to sign up 9.4 million new subscribers globally, far above the 7.18 million average of forecasts compiled by Bloomberg.
The news is likely to restore investor confidence in the streaming service, which when reporting second-quarter earnings July had a shortfall of new subscribers in exceed of 1 million compared to analyst projections. During that quarter, Netflix had a dearth of new programming that resonated with viewers the way hits like House of Cards and Stranger Things had done in the past.
The Silicon Valley company has been ramping up its investment in original programming as it faces increased competition from rivals like Hulu and Amazon, and traditional media firms begin to enter the market for streaming and limit content to outside parties. For the record Netflix produced shows had over 112 Emmy nominations, and 23 wins (a tie with HBO for the most). The last three months of the year bring new movies from top-tier filmmakers, including the Coen brothers, Paul Greengrass and Gravity director Alfonso Cuarón, on whose Roma Netflix is pinning Oscar hopes. "Even the US number was better than I thought it would be".
The Los Gatos, California-based company said revenue jumped 34 percent to $4 billion, matching estimates of Wall Street analysts polled by Refinitiv.
Netflix is not looking to diversify to other areas for now, and is unlikely to feel compelled to for years to come, Reed told the post-earnings interview. Most of the company's subscriber growth came from overseas, with global users approaching 80 million.
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In a letter to shareholders, Netflix said it saw "strong growth broadly across all our markets including Asia".
Media companies that once sold programs to Netflix for hundreds of millions of dollars are now building their own on-demand services to compete head on. That sent the shares up as much as 17 percent in extended trading. While the company reports a net profit, it spends more than it takes in and borrows frequently to finance its programming budget.
Analysts from US financial group Keybanc downgraded their rating on Netflix to "sector weight" from "overweight", questioning whether the company was capable of improving investment returns and margins in years to come.
Analysts keep setting the ceiling and Netflix keeps crashing through it.
"That's going to make it exciting for us, great for consumers and incredible for producers", he said.