Record Q4 subs adds sees Netflix revenues break $11BN barrier | Major Businesses | Business
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Netflix Q4 23Jan2018In what the subscription video-on-demand (SVOD) leader calls a ‘beautiful Q4’, Netflix is claiming to have completed a ‘great’ 2017, ending the year with more than 117 million subscribers and growing streaming revenues 36% to total more than $11 billion.

The key to the strong figures was a robust fourth quarter of the year where Netflix added 8.33 million new customers, the highest total in a quarter in the company’s history, to total 24 million for the year and posted $3.181 billion in revenue. Boosted by a 9% increase in average selling prices for subscriptions, global streaming revenue growth amounted to 35%. Operating income was $245 million at a margin of 7.5% compared with $154 million/6.2% in the prior year.

In the US, memberships rose by two million, compared with a forecast of 1.25 million, bringing the total US net adds in the year to 5.3 million. US contribution profit increased 5% year-over-year, although Netflix took a $39 million non-cash charge in Q4 for unreleased content that it decided not to move forward with. Non-US revenues for the quarter amounted to $1.55 billon, driving a profit of $135 million. The latter compared with a $67 million loss in Q4 2016 and marks a tipping point for non-US contribution.

The company attributed the stronger than expected subscription numbers to the company’s original content slate and the ongoing global adoption of online video entertainment. Big hits included programmes such as The Crown, Black Mirror, 13 Reasons Why, Stranger Things and Bright, and during the quarter new titles like the limited series Godless, Marvel’s The Punisher and Mindhunter were successfully launched. Netflix was also boosted by the phenomenon of what it calls ‘binge-racing’.

Given its success in attracting demand for such content, combined with what it says are attractive economics and a positive impact on business in local markets, Netflix has committed to launch over 30 international original series in 2018, including projects from France, Poland, India, Korea and Japan.