Netflix has released their 2018 Q1 earnings report, and the numbers are again positive for the company, which saw its subscriber growth increase, along with revenue.
The company says it saw a 43% increase in revenue year over year in Q1, “the fastest pace in the history of our streaming business,” as a result of an increase in average paid streaming memberships.
For the first three months of 2018, Netflix added 7.4 million subscribers, a 50% growth compared to the same period last year. Nearly 5.5 million of these subscribers were from outside the USA, as its international market continues to see growth. The company now has a staggering 125 million paid subscribers, as it continues to throw a wrench into the traditional Hollywood business model.
Netflix plans to spend as much as $8 billion USD in 2018 to boost its original TV and movie library, up $2 billion compared to last year.
In after hours trading, the positive quarter sent the company’s stock up nearly 7%, part of a rally this year which has seen its stock price grow 60%.
The shareholder letter wrote, “We strive to entertain and to bring joy to people across the world through amazing stories. Our 125 million members provided us with $3.6 billion in streaming revenue in Q1. Our job is to spend this money wisely to increase our members’ delight.”
That last line sounds like a page right out of Apple’s playbook. Seems like what Netflix is doing is working.