Netflix hits 50 million users thanks to global expansion

Netflix has reported that it’s hit 50 million subscribers for the second quarter of the year, and it’s the company’s overseas expansion efforts that have got it there.

The media streaming giant reported revenue of $1.34 billion for Q2, which is a massive increase of 36.9 percent over the same period last year.

While Netflix is still at its strongest on its home turf, the US, it’s worth noting that international subscribers were responsible for $307 million of that revenue. That’s doubled over the past year.

The company’s rapid growth in Latin America, in particular, has been aided by the massive increase in Smart TV adoption in the region. The reason for that sudden increase? The World Cup, of course.

It’s pretty obvious what Netflix does next, besides offering more original content like House of Cards and Orange is the New Black. It opens its service out to even more new territories.

Netflix anticipates the addition of 3.69 million subscribers by the end of the next quarter, and sure enough, 60 percent of those will be from outside of the US.

The reason it can be so confident of such large overseas numbers is that the company is expanding its service to more European territories in September. Netflix will launch in Germany, France, Austria, Switzerland, Belgium, and Luxembourg, which between them offer 60 million broadband-equipped homes – around half of the service’s current addressable market.

Another good move would be offering content parity with the US service, or at least an offering of equivalent strength. But that’s another matter entirely.
Read More: Netflix vs Amazon Prime Instant Video

Via: Forbes