Netflix, the video-streaming company, has announced that the number of customers using its services has increased in the last quarter, pushing its shares up by up to 8% in afterhours trading.
Netflix Shares Shoot Up Amidst Aggressive Expansion Plans
The U.S. based company said that the number of its customers had increased by a sheer 5.59 million between October and December. This brings the total number of Netflix customers to 74.76 million.
In spite of this steady rise in the number of paying subscribers, the company admits that it failed to reach its forecasted growth rate goals for U.S. subscribers.
At the start of the year, Netflix announced that it had already expanded its services to 130 more countries.
The increasingly popular video-streaming company said it was optimistic about the number of customers expected to subscribe, predicting that growth would increase to 6.10million up from 4.88 million last year.
According to Netflix, its plans for global expansion entail targeting well-to-do consumers with smartphones and internationally recognized credit cards.
Although the streaming service has proved to be popular in most countries where it has a presence, it is still trying to penetrate the Chinese market.
Different countries have access to different content. In many countries, subscribers can only access just 10% of the content accessible to US viewers.
The company admits that it will take some time before viewers from all over the world could access the same content.
Lower earnings recorded
In spite of the customer growth, Netflix recorded a drop in profits in the last quarter although it reported that earnings remain positive.
In a statement, the company said that when earnings are taken into consideration, Netflix stayed profitable in the last quarter amidst turmoil in the foreign exchange market and a lower operating income of $42.34 million.
The last year has seen Netflix shares rise by up to 124%.