Netflix Just Had the Biggest Subscriber Sign-Up Quarter in Its History

LOS GATOS, CA -- Netflix, the Los Gatos-based streaming entertainment company said in its latest quarterly earnings report that it gained more subscribers in the previous quarter than in any other three-month period in the 10-year history of its streaming service.

The company said it added 7 million net new members globally during the quarter, nearly two million more than its forecast of 5.2 million, and significantly better than 2015's fourth quarter performance of 5.59 million members, according to the earnings report, which was released Jan. 18.

The company says it added 1.93 million U.S. members in the quarter, exceeding its forecast of 1.45 million and 1.56 million added in the final quarter of 2015. International membership grew by 5.12 million in Q4, against a forecast of 3.75 million and 4.04 million in the year-ago quarter.

"This was the largest quarter of net additions in our history and was driven by strong acquisition trends in both our US and International segments," the company said in its quarterly earnings statement.

"Over 47 percent of our total members are now outside of the U.S., the company said. "This growth was very broad based geographically as our original content continues to be well-received all over the world."

In quarter four, which ran from October through December, the company's global streaming revenue grew 41 percent over the same quarter from the year before, to $2.4 billion, according to the earnings report.

The streaming company's operating profit totaled $154 million, while net income amounted to $67 million, compared with a forecast of $56 million.

For the first quarter of 2017, Netflix says its projecting 5.2 million net subscriber additions, with 1.5 million in the US and 3.7 million internationally.

"Since our global expansion is proceeding well, we intend to grow our global operating margin for many years ahead. We’ve been around a 4 percent annual operating margin for the past two years, and we are targeting about 7 percent for the full year 2017," the earnings report stated. "From here, we will seek to steadily increase revenue and operating margin as we balance growth and profitability. We are in no rush to push margins up too quickly, as we want to ensure we are investing aggressively enough."

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