×

Record Intl. Growth Sees Netflix Beat Q4 Earnings Forecast

Fast growth in international markets, contrasting with only sluggish subscriber gains in North America, was a major factor behind streaming giant Netflix’s better than forecast growth in the last quarter of 2019. The company is set on keeping up that international momentum.

Globally Netflix added 8.76 million new customers in the three months to December – more than one million greater than the company itself had forecast – despite just 420,000 of the total coming from the U.S. and Canada.

The company ended the year with 167 million streaming customers worldwide, including 61 million in the U.S. and 106 million internationally — the first time that the company surpassed 100 million subscribers outside the U.S. Some 4.42 million subscriber gains came in Europe, the Middle East and Africa, 2 million in Latin America, and 1.75 million from the Asia Pacific region.

This underperformance in North America was attributed by the company to “recent price changes and to U.S. competitive launches” from the likes of Disney Plus and Apple TV Plus.

Netflix’s results announcements are nowadays not only showing where new subscribers are coming from they are also including greater detail about content.

Season 3 of Netflix’s royal drama “The Crown” is off to a fast start, with viewership up more than 40% from season two. The hit British series has been viewed in more than 73 million households worldwide since its launch.

The streamer’s top U.K. release last year, however, was “The Disappearance of Madeleine McCann,” a true-crime documentary about a young British girl who went missing during a family vacation in Portugal more than a decade ago. Three other locally-produced titles also appeared in the Netflix’s list of 10 most-watched programs in the U.K. last year.

Local originals led the way in the U.K., India, Korea, Japan, Turkey, Thailand and Sweden, according to 2019 viewership figures, the company said, supporting its “local audiences love local stories” message. As the Los Gatos-based streaming service ramps up production across the globe, it will be banking on more local-language content to attract eyeballs to its service.

Last year Netflix added outposts in Sydney and Berlin to go along with far-flung offices from Sao Paolo to Singapore, where the company has its Asia Pacific regional hub. Last week. Netflix unveiled its Paris office, while new regional headquarters will open in Amsterdam this year, serving Europe, the Middle East and Africa.

Netflix plans to invest around $17.3 billion in content in 2020, according to a recent forecast by Wall Street firm BMO Capital Markets. Much of that spending will be in international markets.

Speaking at Content London in December, Netflix head of international originals Kelly Luegenbiehl said the streamer was just “scratching the surface” of what it plans to do in foreign-language programming. “(In) non-English-language content, this is just the beginning.”

More Biz

  • Harvey Weinstein

    Weinstein Jury Ends First Day of Deliberation With No Verdict

    The jury in the Harvey Weinstein trial has ended the first day of deliberations without reaching a verdict. The jury got the case on Tuesday morning after a six-week trial, in which six women took the stand to accuse the disgraced producer of sexual assault. Weinstein faces five counts, including two counts of predatory sexual [...]

  • CDBaby logo

    CD Baby Is Shutting Down Its Retail Store

    As if the name “CD Baby” weren’t already an anachronism, the independent distributor announced late last week that it is shutting down its retail store, although it will continue to distribute physical product through other channels. “CD Baby’s mission is to help artists monetize and promote their music in the best ways possible,” a message [...]

  • Harvey Weinstein

    Harvey Weinstein Jury Requests to See Evidence During Start of Deliberation

    The jury in the Harvey Weinstein trial asked to be shown the blueprints of his Soho apartment, and some Weinstein emails in which certain accusers’ names were highlighted. The 12-person panel began deliberating earlier on Tuesday morning, after Justice James Burke read them instructions. Weinstein is accused of sexually assaulting Miriam Haley at the Soho [...]

  • American alternative rock band Pearl Jam

    Pearl Jam Tell Congressmen BOSS Ticket-Reform Act Is ‘Flawed’

    UPDATED: The BOSS Act is legislation designed to crack down on improper practices in the secondary ticket market — bots, price-gougers and the like — spearheaded by New Jersey Democratic Congressmen Bill Pascrell and Frank Pallone Jr. The bill, which is officially named the “Better Oversight of Secondary Sales and Accountability in Concert Ticketing Act” [...]

  • Sofar Sounds Unveils a Battery of

    Sofar Sounds Unveils a Battery of New Programs for Artists

    Sofar Sounds — which has made a name and a business for itself by staging “secret gigs and intimate concerts” featuring emerging artists for an invited, engaged audience — today unveiled a series of new programs intended to serve artists better, including a new payment model that will see artists paid more for playing bigger [...]

  • The Night Manager Network

    Endeavor Content Takes Minority Stake in 'Night Manager' Producer Ink Factory

    Endeavor Content has taken a minority stake in “The Night Manager” producer The Ink Factory. Under the deal, the “Killing Eve” and “Night Manager” distributor is to set up a bespoke development fund for Ink Factory. The pact will specifically target the U.S. market with high-end TV series developed out of Ink Factory’s U.S. outpost [...]

  • David Coulthard, Sunil Patel, Jake Humphrey

    Sony Pictures Television Takes Minority Stake in U.K. Sports Producer Whisper

    Sony Pictures Television has invested in U.K. sports-focused production outfit Whisper Group. Effective immediately, the business will replace Channel 4’s Indie Growth Fund as a minority stakeholder in Whisper, which has become a leading voice in sports entertainment. Founded by BAFTA-winning CEO Sunil Patel, broadcaster Jake Humphrey and F1 commentator David Coulthard, Whispers covers NFL, [...]

More From Our Brands

Access exclusive content