Latest in Entertainment

Image credit: AP Photo/John Bazemore

Netflix's price hike didn't hurt subscriber growth

The company added more customers than expected and its stock is soaring.
556 Shares
Share
Tweet
Share

Sponsored Links

AP Photo/John Bazemore

Netflix's delayed-price-hike strategy has apparently paid off, as its earnings report for the third quarter (PDF) showed it added more customers than expected. By the end of the quarter, Netflix says about 75 percent of its older customers have been un-grandfathered to the new price. Despite that bump, it outdid its forecast of adding 2.3 million customers worldwide by adding 3.57 million (370,000 or so in the US), and it expects to add more than 5 million new accounts to that list over the next three months. As a result, Netflix's shares are up nearly $20 in after-hours trading.

The streaming company also is apparently recalibrating its hopes for China, as its letter indicates short term plans to license its exclusive content to other services in the country instead of continuing to pursue a way to launch Netflix there. In friendlier countries, expect to see more deals like the new one with Comcast to put Netflix on cable boxes, as it celebrates "a new golden age of content, with consumers everywhere enjoying unprecedented access to amazing amounts of high-quality programming."

CFO David Well said Netflix wants to fill half of its catalog with original content, and the company says it plans to have over 1,000 hours of originals available next year, up from 600 in 2016. For now, it's touting just-launched series like Stranger Things, Narcos season two, The Get Down and Marvel's Luke Cage. The company will live stream its earnings call in a few minutes which you can watch here, if there are any updates we will add them to this post.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
556 Shares
Share
Tweet
Share

Popular on Engadget

Kik Messenger will keep running under a different owner

Kik Messenger will keep running under a different owner

View
Netflix's 'Cowboy Bebop' production pauses after John Cho is injured on-set

Netflix's 'Cowboy Bebop' production pauses after John Cho is injured on-set

View
Nike puts an accessibility twist on its iconic Air Jordan 1

Nike puts an accessibility twist on its iconic Air Jordan 1

View
Harley-Davidson resumes LiveWire electric motorcycle production

Harley-Davidson resumes LiveWire electric motorcycle production

View
Alphabet’s Wing starts drone deliveries to US homes

Alphabet’s Wing starts drone deliveries to US homes

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr