Netflix racks up 19MN net adds in record-breaking 2016 | VOD | News | Rapid TV News
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As it approaches its tenth anniversary, subscription video-on-demand (VOD) leader Netflix has revealed a booming 2016 with 35% growth in global streaming revenue to $8.3 billion, driven by 19 million new customers, seven million of which were gained in the fourth quarter.

Netflix OITNB iPad lifestyleNetflix now has 93.8 million members, 49.43 million of which are from the core US market which contributed $1.4 billion in revenues during the fourth quarter of 2016. These compared with 44.74 million subs driving $1,106 billion in the fourth quarter of 2015.

In 2016, Netflix made a huge global launch, excluding China, and the company says it has made good progress. However, it conceded that there remains a lot to learn to make Netflix as popular abroad as it is in the US. That said, its international business put on 5.12 million customers during Q4 2016, leading to a total of 44.37 million subs who generated $948 million. This meant that nearly 47% of total members are now based outside the US.

Overall, Netflix’s Q4 global streaming revenues grew 41% year-over-year to $2.4 billion, while contribution profit rose 74% year-over-year to $470 million at a 20% margin. Operating profit totalled $154 million at a 6.2% operating margin. This beat by a wide margin the company’s officially published guidance of $125 million, while net income amounted to $67 million, compared with a forecast of $56 million.

Netflix sees growth slowing in the future. In Q1 2017 its projects 5.2 million net adds with 1.5 million in the US and 3.7 million internationally. Yet it also expects a greater membership impact from the content slate in the second half of 2017 and that on a sequential basis, the strong Q4 results likely pulled forward some net adds from Q1 2017 to Q4 2016. Netflix added it was planning investing over the remaining quarters of 2017 internationally and, as a result, anticipates an international contribution loss in Q2. On a full year basis, it expects international contribution loss to improve substantially year-on-year.