Netflix Subscriber Growth Exceeds Expectations With 3.6 Million New Members
Netflix have announced a higher than expected increase in subscribers in the third quarter of 2016, bringing the total number of members to 86.7 million.
In the company’s third quarter earning report, Netflix said it had added 3.2 million members internationally, compared to their original forecast of 2 million. 400,000 new members also subscribed in the United States, versus a forecast of 300,000.
Netflix attributed the better than expected performance primarily to “excitement around Netflix original content” including new shows like ‘Stranger Things’ and returning content such as the second season of ‘Narcos’.
“We kicked off Q3 with the release of Stranger Things on July 15 to both critical and audience acclaim,” said Netflix. “This nostalgic, supernatural thriller proved to be the blockbuster of the summer and is the kind of broad appeal, cross demographic, and cross border sensation that we hope will distinguish Netflix original content.”
600 hours of original programming will be released by Netflix by the end of 2016, with the company planning to release over 1,000 hours next year.
While the company under forecasted member growth in the third quarter, it over forecasted growth in the second quarter. Netflix noted it had added 12 million global members in the first nine months of 2016, just as it did in 2015.
Due to the surge in memberships tied to Netflix’s launch in 130 territories worldwide at the start of the year, the company expects adding to the existing growth will be “tough” in the new year.
The news led to a 20% jump in Netflix shares in late trading.