TV streaming company Netflix announced its results yesterday, gaining another 3.62m subscribers between July and September and bringing its revenue up to $1.74 billion.
However, shares fell in after hours trading as the company saw fewer new subscribers in the US than expected, attributing this to the “ongoing transition to chip-based credit and debit cards”. It had predicted an extra 1.15m subscribers in the third quarter, but they in face totalled 880,000.
The company have plans to expand internationally, launching in Spain, Italy and Portugal next week and pushing into South Korea, Hong Kong, Taiwan and Singapore in early 2016. They expect to be breaking even for 2016 whilst money is poured into promotion in those countries, and begin making a profit again shortly after.
In a statement, the company praised their ‘originals’ strategy, attributing it to the rise in subscriptions and preferring that to be their focus rather than bidding for existing series such as Top Gear:
“Just three years into our originals strategy, we have come a long way and our content is increasingly recognized for its quality and breadth. This year, we garnered a Netflix-record 34 Emmy nominations, across 11 of our original series and documentaries and won four.”
Netflix (NASDAQ:NFLX) share price dropped in after hours trading yesterday but has since risen, trading up 0.46 percent at 110.23 pence per share.