The streaming media and video on demand online provider Netflix has reached a record high $2.15 billion in revenue based on its third quarter earnings report. In addition to Netflix's success, it also gained 3.6 million new subscribers. The said figures have surpassed previous forecast and even Netflix's own projection.
Netflix Third Quarter Earnings
Business seems to be good for Netflix in the third quarter of 2016. The company's stock also went up to 20 percent on Monday, according to The Verge.
Netflix has also reported its first more than $2 billion revenue. This is 36 percent higher than that of last year. The entertainment company also revealed 3.6 million new subscribers. The figure is higher than Netflix's own projection at $2.3 million. It is expecting a $2.3 billion revenue for the last quarter of 2016.
The Business Insider reports that Netflix's earning per share at $0.12 is more than Wall Street forecasts of $0.06. Wall Street's forecasted 304,000 US subscriber growth compared to the reported 370,000. The difference is even bigger with Wall Street's forecast of 2.0 million new international subscribers compared to the apparent 3.2 million growth.
Netflix has cited its original contents Stranger Things and the second season of Narcos as factors in the increase in revenue.
Netflix Efforts In Its International Market
Netflix is currently available in 22 languages. It is working on localizing it in Poland and Turkey. The company previously announced at the 2016 Consumer Electronics Show that its service will be available worldwide. CEO Reed Hastings had mentioned the planned expansion into 130 countries.
Though Netflix recently revealed that it is not rushing to establish its market in China. The company said that the country's regulatory environment has become challenging. Instead, they plan on licensing content to the existing online providers in China soon. Though Netflix admitted that the revenue of the licensing will only be modest.