The shares of Netflix, Inc. (NASDAQ:NFLX) increased up to 19 percent during the regular and extended hour trading after the video streaming company announced its fourth quarter results. According to its recent quarter results, the company has surpassed 57 million global subscribers with 4.3 million net subscribers in its fourth quarter 2014.
In 2014, Netflix started global expansion with some resistance from local cable and media providers but these quarterly results have justified their move. According to the reports, the company added up to 2.43 million subscribers in the International markets along with 1.9 million in the United States itself. The company is continuously targeting new markets and it has plans to offer its services in Australia and New Zealand in March 2015.
In addition to it, Netflix, Inc. (NASDAQ:NFLX) is placing special attention towards its content production and the company would release its first original movies on August 26 this year. These movies include “Crouching Tiger, Hidden Dragon II: The Green Destiny.”
Netflix, Inc. (NASDAQ:NFLX) reported net revenues of $1.48 billion in its fourth quarter 2014 with net income of $83 million during the quarter. The company surpassed market revenue estimates of $1.40 billion and it nearly doubled its net income from $48 million in the previous year quarter. At the same time, the company reported 57.4 million net paid subscribers at the global level.
While talking about somewhat slower growth in the U.S. market, Reed Hastings, CEO of Netflix, Inc. (NASDAQ:NFLX), said, “We believe there is big growth ahead in the US market for Netflix, even if we may not get there in a straight line.” As of now, the video streaming service operates in 50 countries including the United States and its operations were profitable in 40 out of these 50 territories. The international presence of the company has made content rights management much easier for the company.
This article has been written by Prakash Pandey.