Netflix Inc. (NASDAQ:NFLX) announced strong subscriber growth in the third quarter as original shows lured new international viewers and helped the company to retain its U.S. customers in spite of a price increase.
The company added roughly 3.20 million subscribers globally in the latest quarter, well above 2.01 million estimated by analysts. In the U.S, it added 370,000 subscribers, versus consensus forecast of 309,000.
The Los Gatos, California-based company has spent heavily to expand into more than 130 markets across the world, including key countries. However, Netflix has yet to launch its service in the most populous country, China.
Netflix intends to continue its spending on making original and licensed television shows and movies. The company plans to increase spending to $6 billion in 2017, as compared to $5 billion this year.
Looking forward, the company expects to add 1.45 million subscribers in the U.S. in the fourth quarter. Analysts surveyed by FactSet StreetAccount were looking for 1.27 million additions.
In the markets outside U.S, Netflix expects to add 3.75 million subscribers, above average analysts’ estimates of 3.32 million.
Netflix shares jumped nearly 20 percent in the after-hours trading session on Monday following better-than-expected subscriber growth in the third quarter. NFLX stock has a 52-week range of $79.95-$133.27. The company’s market cap is $43.32 billion.
Netflix Inc. is an Internet television network, engaged in the Internet delivery of television (TV) shows and movies on various Internet-connected screens. The Company operates in three segments: Domestic streaming, International streaming and Domestic DVD. It provides members with the ability to receive TV shows and movies streaming content, including original series, documentaries, and feature films through a host of Internet-connected screens, such as TVs, digital video players, TV set-top boxes, and mobile devices. The company also provides DVDs-by-mail membership services. It serves approximately 75 million members in 190 countries. Netflix, Inc. was founded in 1997 and is headquartered in Los Gatos, California.