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Is Netflix’s global expansion paying off? We’ll know more tomorrow

It’s been one year since Netflix set out to conquer the world with an aggressive expansion into 130 new countries. That global push, coupled with ongoing investments in original shows—from old favorites like Orange Is the New Black to new ones like Stranger Things—is designed to keep its subscriber base growing steadily. 

So how it’s going? We’ll have a much clearer picture tomorrow when Netflix announces earnings for the fourth quarter of 2016. So far, results have been mixed, but largely positive: During Q2, Netflix missed subscriber growth expectations, but Q3 was more forgiving: It beat revenue and subscriber expectations, breaking $2 billion in revenue for the first time.

 

It’s impossible to overstate how important international growth is to Netflix’s future. As you can see from the chart above, domestic subscribers have been flatlining for at least a year and competition from the likes of Amazon, Hulu, and others will only increase in the United States.

For Q4, Netflix expects 5.19 million new subscribers, most of which are outside the U.S. Its total streaming revenue is expected to hit $2.34 billion. 


[Photo: Curtis Baker/Netflix]JPT