Netflix Provides A File Eight Million Subscribers

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Netflix’s latest worth hike is not denting its subscriber numbers.

Netflix (NFLX) mentioned Monday it added greater than eight million internet subscribers within the fourth quarter of 2017, marking the strongest quarterly subscription good points in its historical past.

The corporate credited the “stronger than anticipated” good points in new prospects partially to its “authentic content material slate.” That probably consists of “Stranger Issues,” Netflix’s breakout present, which returned for a second season through the quarter.

The overwhelming majority of recent subscribers proceed to come back from abroad, as Netflix has expanded into new worldwide markets. Netflix added 2 million customers within the U.S. and 6.36 million customers overseas.

The corporate’s inventory popped over eight% in after hours buying and selling Monday following the earnings report. If these good points maintain, Netflix would open Tuesday at a brand new all-time excessive and prime a $100 billion market cap for the primary time.

Shares of Netflix soared greater than 50% in 2017, and have continued to rise within the first weeks of 2018 on optimism about its main place within the streaming market.

Netflix’s wager on authentic content material has paid off with hit reveals like “Orange Is The New Black,” and “The Crown.” The corporate has mentioned it can spend as much as $eight billion on programming this yr. Netflix additionally mentioned Monday it intends to spend $2 billion on advertising and marketing.

However there’s some trigger for concern.

Final month, Disney (DIS) introduced a $52 billion deal to purchase 21st Century Fox (FOX), which may assist energy a Disney-branded streaming service to rival Netflix. Disney mentioned in August it could pull content material from Netflix.

“The marketplace for leisure time is huge and may help many profitable companies,” Netflix mentioned in a letter to buyers Monday, noting the Disney deal.

Netflix can be grappling with the fallout from a wave of sexual harassment allegations towards males in Hollywood.

The corporate has already moved to cancel “Home of Playing cards,” as soon as its flagship present, after Kevin Spacey was accused of sexual harassment. Danny Masterson was written out of “The Ranch” amid rape allegations. And Netflix’s plans for an additional Louis C.Okay. arise particular have been scrapped within the wake of sexual misconduct allegations.

Aziz Ansari, the star of Netflix’s “Grasp of None,” has additionally come beneath scrutiny lately after an nameless lady detailed an uncomfortable sexual encounter with the comic.

Netflix mentioned Monday it took an “sudden” $39 million cost for content material that “we have determined to not transfer ahead with,” however didn’t specify which reveals or films have been included in that cost.

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