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Netflix’s Second-Quarter Earnings Are In, And International Viewers Matter

Netflix’s Second-Quarter Earnings Are In, And International Viewers Matter
[Photo: Twin Design via Shutterstock]

Netflix reported its quarterly results today–and it’s good news for the company. The streaming platform’s subscriber numbers, both in the U.S. and in foreign markets, indicate the direction the company’s original content will take in the face of competition from Amazon, HBO, and other on-demand services.

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The company acquired 3.3 million new global subscribers during the second quarter of 2015, with an increase of 900,000 domestic users and a whopping 2.4 million subscribers abroad. In total, this means Netflix now has 65.6 million subscribers globally, bringing its American user base to 42.3 million and its foreign contingent to nearly 23.3 million. The company also saw more than $26 million in profit and over $1.6 billion in revenue.

Suffice it to say, Netflix surpassed its target numbers: CEO Reed Hastings had previously estimated the company would rope in an additional 600,000 subscribers in the U.S. and 1.9 million abroad.

International markets are crucial for Netflix’s original programming, which is intended for foreign shores just as much as it is for domestic viewers. The Norwegian-American crime comedy Lilyhammer, for example, shot in Brazil for its most recent season to cater to a broader viewer base. Epic period drama Marco Polo, which features a diverse cast and films in international locales, was largely marketed toward non-English-speaking markets.

In non-earnings news, Hastings just gave his blessing for the merger between Time Warner Cable and Charter Communications. The company wrote, in a filing to the Federal Communications Commission, that the deal offers “substantial public interest benefit.” This bodes well for Time Warner, since Netflix was one of the largest voices lobbying against the failed Comcast-Time Warner acquisition last year.

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