Netflix hits 125 million subscribers

Even a price hike can't slow Netflix down.Netflix added 7.4 million subscribers in the first three months of 2...

Posted: Apr 17, 2018 8:23 AM
Updated: Apr 17, 2018 8:23 AM

Even a price hike can't slow Netflix down.

Netflix added 7.4 million subscribers in the first three months of 2018, up 50% from the same quarter a year earlier, the company reported on Monday. It now has 125 million subscribers.

The vast majority of the new subscribers, nearly 5.5 million, came from outside the United States as Netflix continues to gain ground in international markets.

The strong subscriber growth came in well ahead of Wall Street's estimates, helping send Netflix stock up 6% in after-hours trading Monday.

Daniel Ives, an analyst with GBH Insights, called Netflix's earnings results "eye popping" in an investor note.

"It shows the company's aggressive international expansion strategy is bearing fruit and putting major fuel in the company's growth engine for the rest of 2018 and beyond," Ives wrote.

Expectations were high heading into Netflix's earnings report. While several leading tech companies have stumbled this year amid regulatory concerns, Netflix stock has soared 60% on optimism for its original content strategy.

During the first quarter of this year, Netflix launched 18 original series, 11 new seasons for existing original series, and 14 new original movies, according to Michael Pachter, an analyst with Wedbush.

The lineup included a new season of "Jessica Jones," a reboot of "Queer Eye" and the launch of a new talk show from David Letterman, which kicked off with an interview with former President Barack Obama.

Related: Sorry, Hollywood. Netflix rules the media world

Netflix expects to have 700 programs available for customers in 2018, according to CFO David Wells.

None of that has come cheap. The company expects to spend as much as $8 billion on shows and movies this year, up from $6 billion in 2017, according to the earnings report.

Netflix has now committed $17.9 billion to streaming content deals, up from $15.3 billion a year earlier. It also reportedly coughed up $300 million to hire Ryan Murphy, the power producer behind "Glee."

To help cover its mounting costs, Netflix hiked prices by 10% in the final quarter of 2017, to $10.99 a month for the standard service. Yet, the company's subscriber growth continues to be trending in the right direction.

Netflix expects to add 6.2 million subscribers in the upcoming quarter, which would also come in above Wall Street estimates.

Still, Netflix continues to face stiff competition. Apple is ramping up its investments in original content. Amazon is rumored to be willing to drop $1 billion on a single TV show. Even Facebook is pushing deeper into video content. (Netflix's CEO Reed Hastings sits on its board).

The belief among analysts like Deutsche Bank's Brian Kraft is that Netflix has too much of a head start to lose now.

"Netflix has changed the industry in a profound way and in doing so has given itself a significant lead, making it very difficult for the traditional media companies, or even other big tech companies, to catch up," Kraft wrote last week.

-- CNN's Paul R. La Monica contributed to this report.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 319115

Reported Deaths: 7353
CountyCasesDeaths
DeSoto22246264
Hinds20612421
Harrison18342316
Rankin13855282
Jackson13666248
Madison10213224
Lee10050176
Jones8452167
Forrest7810153
Lauderdale7253242
Lowndes6488149
Lamar632288
Lafayette6295120
Washington5412136
Bolivar4833133
Panola4659110
Oktibbeha465898
Pearl River4591146
Marshall4571105
Warren4436121
Pontotoc424573
Union415576
Monroe4154135
Neshoba4059179
Lincoln4007111
Hancock385187
Leflore3514125
Tate342386
Sunflower339391
Pike3366110
Alcorn323272
Scott319274
Yazoo313971
Adams304785
Itawamba304777
Copiah299666
Coahoma298283
Simpson297889
Tippah291168
Prentiss283361
Leake271674
Marion271280
Covington266683
Wayne264442
Grenada264087
George251851
Newton248563
Tishomingo230867
Winston229881
Jasper222048
Attala214973
Chickasaw210459
Holmes190374
Clay187454
Stone187233
Tallahatchie179941
Clarke178980
Calhoun173732
Yalobusha167740
Smith164034
Walthall135147
Greene131633
Lawrence131024
Montgomery128643
Noxubee127934
Perry126638
Amite125942
Carroll122330
Webster115032
Tunica107927
Jefferson Davis107633
Claiborne102930
Benton102225
Humphreys97533
Kemper96628
Franklin84923
Quitman81816
Choctaw79018
Wilkinson69332
Jefferson66228
Sharkey50817
Issaquena1696
Unassigned00

Alabama Coronavirus Cases

Cases: 547323

Reported Deaths: 11266
CountyCasesDeaths
Jefferson808021563
Mobile41925826
Madison35600522
Tuscaloosa26136458
Shelby25554254
Montgomery25067610
Baldwin21774313
Lee16234175
Calhoun14692325
Morgan14614285
Etowah14132361
Marshall12443230
Houston10748287
Elmore10295212
Limestone10180157
St. Clair10146250
Cullman9921200
Lauderdale9582248
DeKalb8955189
Talladega8441184
Walker7318279
Autauga7215113
Blount6925139
Jackson6900113
Colbert6394139
Coffee5616126
Dale4928114
Russell454441
Chilton4461116
Franklin430683
Covington4263122
Tallapoosa4117154
Escambia400280
Chambers3715123
Dallas3604156
Clarke352861
Marion3231106
Pike313978
Lawrence3121100
Winston283372
Bibb267364
Geneva256981
Marengo250565
Pickens236562
Barbour234559
Hale226578
Butler223371
Fayette217162
Henry193843
Cherokee187245
Randolph186844
Monroe179141
Washington170339
Macon163051
Clay159559
Crenshaw155057
Cleburne152543
Lamar145837
Lowndes141953
Wilcox127030
Bullock124242
Conecuh112930
Coosa111129
Perry108726
Sumter105732
Greene93434
Choctaw61725
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