Netflix has unveiled its Q1, saying it had added a global net increase of 6.47 million subscribers during the quarter. This was better than its previous ‘best ever’ quarter (Q2/2015) when it added 5.59 million net new subs. US growth was 2.23 million, and helping Netflix’s overall global subs base to 81.5 million.
Most of the real growth came from its international markets where it added 4.51 million net new subscribers, taking Netflix’s international subs count to 34.53 million. 42 per cent of the overall total.
However, this was not enough to impress the market and in after-hours trading Netflix’s share price fell back some 12 per cent, and not helped by weaker guidance for future trading progress.
“We are pleased Netflix is finding acceptance around the world,” CEO Reed Hastings wrote in a note to shareholders. “We have lots of work to do to make Netflix more relevant market by market, but the opportunity is amazing.”
Netflix is guiding that Q2 growth will be about 500,000 subs in the US, and 2 million internationally, and this is lower than the market had expected.
The numbers are also cautious in anticipation of potential cancellations caused by the upcoming price rises for US subscribers. Netflix will raise its monthly subscription rate from a minimum $7.99 a month to $9.99.