Netflix shares rocket 7pc as 125m sign up
nETFLix shares leapt nearly 7pc last night after it added more than 7.4m new subscribers.
in a blockbuster earnings announcement, the streaming giant said subscriber numbers grew 6.3pc to 125m in the first quarter, smashing analysts’ predictions.
The rise was driven by a 5.5m increase in customers outside the us as revenue rocketed by more than 40pc in the past three months to £2.5bn year-on-year.
netflix added nearly 2m subscribers in the us, and said international subscriptions now account for 50pc of revenue and 55pc of subscriptions.
it plans to spend more than £5.6bn on 700 new shows this year, including a remake of the 1960s classic Lost in space ( pictured), and a new series of existing hits Orange is The new Black and narcos.
The california-based tech firm, which has customers in more than 190 countries, predicts it will add a further 6.2m subscribers next quarter as consumers increasingly shun traditional television in favour of on- demand streaming services.
in a letter to shareholders, netflix said: ‘We strive to entertain and to bring joy to people across the world through amazing stories.
‘Our 125m members provided us with £2.5bn in streaming revenue in the first quarter. Our job is to spend this money wisely to increase our members’ delight.’
netflix shares were down 1.6pc as us markets closed. But shares rocketed 6.8pc in aftermarket trading. The announcement follows an investor backlash against technology stocks that wiped trillions off share prices in the wake of the Facebook data scandal.
Despite the sell- off, netflix shares have climbed by more than 108pc over the past year.
On Friday, the streaming firm was boosted by a fresh tie-up with us cable giant comcast, which has lodged a £22.1bn bid to snap up British satellite television provider sky.
under the terms of the deal, comcast’s 22.5m television subscribers will be able to add netflix to their packages, opening up a huge potential new source of customers for the firm.
separately, netflix has followed the likes of Apple and samsung in developing its own typeface in a bid to save millions of dollars a year in licensing fees.
netflix sans was developed with London-based typeface designer Dalton Maag and will be the font used on its streaming service.
noah nathan, netflix’s design lead, told website it’s nice That: ‘With the global nature of netflix’s business, font licensing can get quite expensive.
‘Developing this typeface not only created an ownable and unique element for the brand’s aesthetic but saves the company millions of dollars a year as foundries move towards impressionbased licensing for their typefaces in many digital advertising spaces.’