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Netflix hits Q3 record with seven million new subs

Streaming giant has performed better than expected this quarter

Netflix has smashed its Q3 subs record with seven million total net additions.

The service secured 1.09 million new streaming subs in the US and 5.87 million internationally, despite conservative forecasts for the quarter, according to Variety.

Netflix said in a quarterly investor letter that they were the result of greater-than-expected customer acquisition globally, “with strong growth broadly across all our markets including Asia.” It ended the quarter with 137.1 million streaming members worldwide, and reported quarterly revenue of $4.0 billion, up 36 per cent year over year.

The company is expected to spend around $13 billion on content in 2018: “We recognise we are making huge cash investments in content, and we want to assure our investors that we have the same high confidence in the underlying economics as our cash investments in the past,” Netflix said in its letter to shareholders. “These investments we see as very likely to help us to keep our revenue and operating profits growing for a very long time ahead.”

More than 80 million subscribers — at least 58 per cent of its 137.1 million total worldwide streaming users — watched one of Netflix’ “Summer of Love” rom-coms over the past few months.

“This was a key quarter for the company following the challenges of the prior one which was a one off, and largely down to seasonality,” said tech and media analyst Paolo Pescatore. “More importantly, strong growth in its overseas market is encouraging, and this bodes well as the company typically performs well over the next couple of quarters. All of its rivals are now making huge bets on video and it cannot afford to be left behind. It now needs to rely more than ever on its extensive cable and telco relationships.”

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