Netflix surprised Wall Street Monday evening, reporting a third-quarter revenue of $2.15 billion — up 36 percent over last year — and nearly 3.6 million new subscribers.
News of Netflix’s stellar quarter sent shares surging more than 20 percent in after hours trading.
The strong quarter was helped along by the “excitement around Netflix original content” such as Stranger Things and the second season of Narcos. In its earnings report, Netflix said Narcos had a “positive impact on member acquisition” across all markets.
Netflix, which first began producing its own content four years ago, plans to spend $6 billion on original content in 2017, which will translate into 1,000 hours of programming, a significant rise from the roughly 600 hours available this year.
“What we’re focused on is just how do we increase value to the consumer by having more spectacular shows, so that people watch more of Netflix,” CEO Reed Hastings said in a conference call with analysts and investors Monday night.
He added that Netflix plans to continue to woo viewers away from distractions offered by YouTube, Facebook video and Amazon.
“What affects us is, can we continue to win affection?” he said. “And that’s through doing all of this incredible content through expanding globally, having all those rights be global eventually, so those are the things we’re focused on.”
When asked if the streaming firm would allow off-line viewing in the near future, Hastings said the company is “open to it,” adding that it is possible it will be made available in the future but, currently, has no “specific” information to offer.
Netflix is forecasting it will, for the remainder of 2016, operate “around break even, and then start generating material global profits in 2017 and beyond.”
Jennifer Cowan is the Managing Editor for SiteProNews.
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