Netflix has relied on international growth in addition to heavy investments in original content to drive subscriptions — in addition to Monday’s results provided an update on their effectiveness.
Netflix’s addition of more than 7.4 million international subscribers set a brand new record, marking growth of 50 percent through a year ago.
Chief content officer Ted Sarandos said Netflix has shot original content in 17 countries as the idea focuses more on local programming, in addition to in which many of Netflix’s foreign-language shows could be considered “big hits” on American cable channels, thanks to artful subtitling. CEO Reed Hastings added in which Netflix has also seen success on its international mobile app offerings. although Hastings also said in which the company hadn’t changed its view on expanding in China, in addition to will continue to license content.
The company also said the idea expects to have $7.5 billion to $8 billion of content expenses This specific year, in line with previous estimates. Netflix had said the idea expects to grow to 60 million to 0 million members from the U.S. over time in addition to in which the idea could spend $8 billion on content in addition to $2 billion on marketing This specific year.
The company highlighted Spanish-language hit “La Casa de Papel,” unscripted series “Queer Eye,” in addition to beloved franchises such as “Marvel’s Jessica Jones,” “Grace in addition to Frankie,” “Santa Clarita Diet” in addition to “A Series of Unfortunate Events.” Netflix also credited brand new talent, such as Shonda Rhimes in addition to Jenji Kohan, for their “proven track record of success” in addition to for allowing Netflix to cut back “reliance on third-party studios.”
“We’re investing in more marketing of brand new original titles to create more density of viewing in addition to
conversation around each title,” the company said in a statement.
The marketing spending comes after Netflix was barred through competing at the Cannes film festival due to a rule change — a setback the company called unfortunate.
One thing in which’s not on the spending slate, Sarandos said, can be news programming.
“Our move into news has been misreported over in addition to over again. We’re not looking to expand into news beyond the work in which we’re doing in long-form in addition to short-form documentary,” Sarandos said. “Topical interview shows, absolutely, although keep in mind, those are entertainment.”
Netflix faces increasing competition through Amazon in addition to Disney, which have their own offerings, as well as traditional media companies in addition to technology companies such as Apple. Hastings said the company still features a long way to go to compete with the likes of YouTube, in addition to noted in which Netflix’s ability to raise prices depends on providing more value than competitors.
“If we get lazy or slow, we’ll be run over just like anybody else,” Hastings said.
At the same time, Netflix can be expanding into cable bundles in addition to recently announced a brand new offering with Comcast, in addition to bundles with Sky, T-Mobile in addition to Altice.
Netflix said on Monday the bundles allow the company to upsell existing subscribers. Executives said on a conference call in which the “brand new wave” of operator partnerships was a consistent shift across all geographic markets.
“We remain primarily a direct-to-consumer business, although we see our bundling initiative as an attractive supplemental channel,” the company said.
On Monday, Netflix also announced the addition of Susan Rice, a former national security advisor in addition to U.S. ambassador to the United Nations, to the board of directors.
— CNBC’s Julia Boorstin contributed to This specific report.