Netflix sees boom in international viewers
Non-US subscribers increase 140 per cent and company almost triples revenue
Netflix has revealed massive international growth, with a key region doubling subscriber numbers in three years.
Europe, the Middle East and Africa are grouped under one area and represent Neflix’s largest non-US region. On 30 September it had 47.4m subscribers, compared with 19.7m subscribers on 31 March 2017, representing a 140 per cent increase, and almost tripling revenue to $4bn (£3bn, €3.6bn).
Latin America also posted rapid growth, nearly doubling subscribers to 29.4m, while Asia-Pacific more than tripled in size to reach 14.5m subscribers.
Netflix’s subscription growth in the US is the main driver of its stock, but this has slowed recently as the company faces greater competition.
Last month Walt Disney and Apple launched new streaming services, while WarnerMedia plans to debut its new streaming service HBO Max next year, and NBCUniversal will roll out its Peacock platform.
Results from the second-quarter revealed the first drop in US subscribers in nearly a decade, which saw Netflix shares fall 16 per cent from mid-July.
This new financial report groups US with Canada, boosting the total number of customers to 67.1m, which is up from 66.5m at the end of June.
However, analysts say Netflix will come under increased pressure from the streaming wars, with Needham & Company downgrading its stock last week (11 December), predicting the company will lose four million US subscriptions in 2020.
In response, shares of Netflix fell by more than 3 per cent, adding to its nearly 7 per cent decline since the start of December.
With subscriber numbers massively increasing outside of the US, Netflix will no doubt be hoping to impress investors and assuage their concerns.
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