January 17, 2019
Netflix Jan. 17 reported it added 7.3 million net new paid subscribers internationally in the fourth quarter (ended Dec. 31, 2018) — which was above company projections of 6.1 million. In the United States, Netflix added 1.53 million paid subs, compared to projections of 1.5 million.
Netflix no longer combines new subs on trial basis with paid additions. As a result, Netflix said it had 2.07 million new trial subs in the U.S., in addition to 7.13 million internationally.
The service ended the period with 139 million paid subscribers, up 9 million paid members from the start of the quarter and 29 million from Jan. 1, 2018. Netflix added 22 million subs in 2017.
The SVOD pioneer grew quarterly revenue 35% to $16 billion, nearly doubling operating income to $1.6 billion.
Netflix said that through its first four weeks, original movie Bird Box, starring Sandra Bullock, was streamed by more than 80 million household worldwide.
The service said its original feature films continue to generate audiences in the home and in theaters. Five weeks after its debut, Roma from director Alfonso Cuaron is still playing on 900 screens worldwide — including some 70mm format projections.
Netflix said it service commands about 10% of all TV screen time in the U.S., and about half as much on mobile devices.
“There are thousands of competitors in this highly fragmented market vying to entertain consumers,” wrote CEO Reed Hastings and CFO Spencer Neumann in the investor letter. “Our growth is based on how good our experience is to subscribers … not on Disney+, Amazon Prime Video or others.”
Finally, Netflix ended the period with 2.7 million disc renters — down from 3.3 million during the previous-year period. The legacy segment generated $51.4 million operating profit on revenue of $85.1 million. That compared to operating profit of $62.6 million and revenue $105.1 million last year