Netflix over-delivered on its global subscribers -- adding 5.6 million in the fourth quarter of 2015. It looks to add another 6.1 million in the first quarter of 2016.
Netflix now has nearly
74.8 million subscribers worldwide, with analysts expecting totals of just over 74 million.
Netflix stock closed up 3.7% to $107.89 on Tuesday -- with prices then rising sharply in aftermarket
trading, up nearly 10%, at times.
Much of this came on the heels of Netflix recently announcing that it added 130 new territories globally -- per Reed Hastings, CEO, speaking at the Consumer
Electronics Show.
The U.S. market added 1.56 million subscribers in the fourth quarter -- now totaling 44.74 million -- with 4.04 million new international subscribers, totaling 30.02 million.
Company guidance is that it will add 1.75 million U.S. customers and 4.35 million global customers in the first quarter of 2016.
One analyst believes Netflix will top 100 million worldwide
subscribers in two years.
Netflix has said it plans to spend some $6 billion in programming costs in 2016. It will launch over 600 hours of original programming up from 450 hours in 2015. The
company streamed 42.5 billion hours in 2015, up from 29 billion hours in 2014.
Netflix commands 37% of peak download Internet traffic in North America.
The average subscriber price
grew 4% to 5% during the period -- excluding the impact of foreign currency.
For the fourth quarter, Netflix revenues were 23% higher to $1.82 billion, but with net profits almost cut in
half to $43 million. Netflix says negative foreign exchange issues contributed to lower profitability.