Netflix, the world’s pioneer in streaming video services added over a third more new subscribers than was expected during the final quarter of 2016. That was a sign of success for the ambitious plan of global expansion that sent shares of the company up 8% during afterhours trading.
Netflix signed more than 7.1 million subscribers globally, which was much more than expectations of analysts of 5.2 million showed a report released by an online research firm. The new number of subscribers beat targets set for domestic subscribers and international subscribers.
Original Netflix shows such as Marvel’s Luke Cage and The Crown a British drama performed well worldwide, said Netflix noting that its competitors were also adapting to compete better.
Amazon.com recently expanded Amazon Prime Video worldwide and BBC in Britain announced its plans to release a full series at one time to allow for binge watching, which has been popularized by users of Netflix.
It is a world of Internet TV, which presents opportunities as well as challenges for Netflix said the company in a prepared stated in its letter for the quarter to its shareholders.
Netflix, in the earnings report, reported that it added over 5.1 million new international subscribers and 1.9 million new ones in the U.S. during the quarter ending December 31.
Analysts had forecasted that non-U.S. new subscribers would be 3.72 million and 1.44 million in the U.S.
One analyst said that for Netflix the battle at home was now trying to keep its customers as much as trying to entice new ones.
Netflix announced its planning to release over 1,000 hours of new original programming during 2017, which is up from last year’s 600 hours.
Netflix recently entered into a new deal with Jerry Seinfeld to stream the comedian’s new show along with two other new specials with stand up comedians and other shows he is scheduled to develop.
The company, based in Los Gatos, California said that revenue increased by 35.9% to just over $2.48 billion during the final quarter in December.
Analysts had expected the company to have revenue of just over $2.47 billion.
The company expects to add 1.5 million U.S. subscribers during the ongoing quarter, fewer than the estimate by analysts of 1.79 billion.
In international markets, the video streaming company said it expects to add over 3.7 million new subscribers, which is above analyst estimates of 3.05 million.