Netflix Posts Strong International Growth
Netflix closed in on the 75 million member mark in the 2015 fourth quarter, adding 5.59 million members, while at a local level Roy Morgan Research figures show the streaming service enjoyed a strong debut in 2015.
The quarter four membership figures were largely built on the back of strong international growth, with Netflix adding 4.04 million international members for the quarter, along with 1.56 million US members, ending the quarter with 74.76 million members.
Netflix had forecast the addition of 5.15 million members for the quarter, while its member numbers were up from the addition of 4.33 million members (1.9 million US and 2.43 million international) in last year’s corresponding quarter.
Netflix reported revenue of US$1.82 billion for the quarter, up year-on-year from US$1.48 billion, and net income of US$43.18 million, down from US$83.37 million.
Roy Morgan figures, meanwhile, show Netflix ended 2015 reaching 2,728,000 Australians 14+ (13.9 per cent), with 1,035,000 homes subscribed.
While Netflix posted rapid growth following its local launch, Roy Morgan figures reveal that from October to December its growth slowed.
“Netflix has clearly enjoyed remarkable growth during its inaugural year in Australia, however the recent slowdown in net monthly increases indicates there it will take longer to become truly mainstream,” Tim Martin, Roy Morgan Research general manager – media, commented.
“Technology adoption segments show that early adopters, tech-savvy professionals and engaged young social networkers have been the quickest to subscribe to Netflix – and it could take a while longer for the idea of subscription video to gain a foothold among older tech explorers, technology traditionalists and technophobes.”
Netflix this year launched in 130 new countries, with the streaming giant having made the announcement at CES 2016.
Co-founder and chief executive Reed Hastings described it as the “birth of a new global internet TV network”.
In its letter to shareholders, Netflix stated that in China, its last remaining major market, it has “work and uncertainty ahead”, with it building relations and understanding market conditions, stating that it may be able to get started this year or that it may take longer.
In the 2016 first quarter, Netflix has forecast growth of 6.1 million net additions compared to 4.88 million in last year’s corresponding quarter.