Netflix adds record subs in Q2
July 18, 2017
By Chris Forrester
Netflix saw its share price rocket 11 per cent on July 17th to an all-time high of $179 (€155) at one point, helped by impressive subscriber numbers.
Netflix told the market that it had brought in a Q2 record of 5.2 million net new subscribers globally, up from 99 million at the end of Q1 to 103.95 million in total. The new subs numbers break down as US 1.07 million and International 4.14 million.
The share price rise may not stop. Even though the day closed with Netflix having fallen back to a more cautious $161.70 a share, after profit taking, one analyst raised his 12-month target for Netflix to $200 a share, motivated by the growing appeal of Netflix in international markets.
Netflix is expecting to add another 4.4 million net new subscribers, with 3.65 million coming from its international markets. In fact, ‘International’ now makes up for 50.1 per cent of its overall subscriber base.
CEO Reed Hastings cautioned investors that its award-winning programmes and films were costing more than anticipated, and made it clear that the company plans to exert more discipline in the future. So far, Netflix has renewed 93 per cent of its original series, much higher than the historical rate of traditional TV networks.