Netflix reaches almost 75MN subs but sees huge Q4 profit tumble | VOD | News | Rapid TV News
By continuing to use this site you consent to the use of cookies on your device as described in our privacy policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. [Close]
Netflix’s fourth-quarter subscriber results topped expectations, adding a record 5.59 million total streaming members during the quarter, for a total of 74.76 million globally.

However, most of that growth came from the subscription video-on-demand (SVOD) giant’s international expansion. Despite the success of the original series Narco and Marvel’s Jessica Jones, in the United States, Netflix missed US growth forecasts, adding just 1.56 million subscribers. That’s a decline from the 1.9 million it added domestically in the year-ago period.

“The next 50 million is a little bit harder than the first 50 million in terms of growth,” David Wells, Netflix’s chief financial officer, said during an earnings call.

Also, total profit was less than a bright spot, as the company’s global expansion costs took their toll. It slid to $43.2 million, a 48% drop from a year earlier.

Netflix said that it expects to add 6.1 million members during the current quarter, running at break-even profitability through at least the end of 2016. At CES, it announced a worldwide expansion to 190 countries.

Margins will continue to be squeezed as it expects to spend more than $6 billion on programming in 2016, more than $1 billion on marketing and more than $800 million on technology and development. As a result of this, Netflix plans to introduce more than 600 hours of original series, films and other content — up from 450 hours in 2015.

Total revenue was $1.8 billion in the fourth quarter, up 22.8% from the same period during the previous year.