• Home
  • News
  • Fortune 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
TechNetflix

Netflix Shares Soar 8% On Subscriber Surprise

By
Reuters
Reuters
By
Reuters
Reuters
January 18, 2017, 4:25 PM ET
Photograph by Getty Images

Netflix’s international and U.S. subscriber additions blew past analysts’ estimates as the video streaming service released shows including the award-winning British drama The Crown and a revival of Gilmore Girls.

Netflix, whose shares rose 8% in extended trading, has been hugely successful in attracting more subscribers through the popularity of its original shows.

Netflix, whose original shows include Narcos and Stranger Things, said on Wednesday it signed up 5.12 million subscribers outside the United States in the quarter ended Dec. 31.

Analysts on average had estimated 3.73 million additions, according to research firm FactSet StreetAccount.

Faced with slowing growth in the United States, Netflix has launched in almost every country, but is now faced with the task of tweaking the service to suit different markets and cultures, even as competitors expand.

In the United States, Netflix added 1.93 million subscribers, compared with the average estimate of 1.44 million.

The company plans to spend $6 billion in original content in 2017, a $1 billion increase from last year.

Netflix – whose competitors include Amazon.com’s streaming service and Hulu, besides cable channels such as HBO – plans to release over 1,000 hours of original programming this year, up from 600 hours last year.

The Los Gatos, California-based company said its revenue rose 35.9 percent to $2.48 billion in the December quarter. Analysts on average had expected $2.47 billion, according to Thomson Reuters I/B/E/S.

The company said it expects to add 1.50 million subscribers in the United States in the current quarter, below the FactSet estimate of 1.79 million.

For more about Netflix, watch:

In international markets, Netflix said it expects to add 3.70 million subscribers, above the average estimate of 3.05 million.

Up to Wednesday’s close of $133.26, Netflix’s stock had risen 33.5% since it reported third quarter results in October.

About the Author
By Reuters
See full bioRight Arrow Button Icon
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.