Netflix has announced that it finished 2014 with 57.4 million subscribers, which means the company gained approximately 4.3 million members more than it had in the third quarter of last year, which was the best period for the company in member growth.
The company’s revenue in the fourth quarter of 2014 reached approximately $1.48 billion, which was what the analysts expected. Netflix added approximately 2.4 million subscribers outside the United States, while in the US 1.9 million new members subscribed to their channel.
Netflix has reached almost 60 million subscribers fort the first time ever in the first quarter of 2015 and will finish Q1 with 61.4 million subscribers all over the world.
It appears that the company’s international expansion is beginning to show results. Netflix CEO, Reed Hastings, noted that the company’s expectations of expanding outside the United States were exceeded and Netflix is now growing faster than it was previously expected.
Hastings explained that Netflix’s business strategy of expanding internationally was to grow as fast as the company could, but still keep making a profit globally. He adds that Netflix has progressed strongly in the last year and he believes that the company will complete the global expansion in the next couple of years. Hastings says that the goal is to expand and remain profitable as well.
Netflix is looking to expand in New Zealand and Australia in the near future. Also, the company hopes to gain more subscribers from China, but the options on how to achieve that goal are still modest.
Hasting stated that with the Internet progressing considerably over the next two decades, the number of entertainment services around the world will also increase, so Netflix’s intention is to be one of the leaders in the business.
Hastings said that he no longer thinks the US price increase is to blame for Netflix’s slow member growth in the beginning of 2014.
He explained that Netflix found its growth in new subscribers to be stronger in the US areas with lower incomes. Also, Netflix changed its subscription prices in Mexico during the fourth quarter of 2014 and saw no major changes in subscriber growth.
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