Netflix reported first-quarter customer numbers slightly below expectations, but said it still sees "gigantic" potential for worldwide growth. The company announced on Monday that it expects to cross the 100-million subscriber mark this weekend.
"It wasn't a strong quarter for Netflix in terms of content", said eMarketer senior analyst Paul Verna.
According to Netflix they have experienced a net increase of 4.95 million subscribers. The online streaming giant also confirms that it's made a deal with Sandler to release four more films exclusively with Netflix. The surge in subscribers of US-based Netflix comes after it invested heavily in overseas markets.
Netflix said it expects to add 3.2 million subscribers in the second quarter-more than analysts forecasted-thanks, in part, to popular new programming that premiered near the end of the first quarter, like 13 Reasons Why and Dave Chappelle: Collection 1, which is Netflix's most-viewed comedy special ever.
The Los Gatos, California company now has a market value of about $63 billion.
"Everybody watches TV and almost everybody has the internet, so I don't see anything that's going to stop Netflix from getting to most people in the United States and then eventually hopefully most people around the world", Hastings said. But according to the first notes to clients Tuesday morning, analysts believes Netflix is being conservative, even with that better-than-expected forecast. HBO has 134 million subscribers worldwide, including viewers paying for an internet-only version of the channel that was inspired by Netflix's success.
Although Netflix is far from a one trick pony, the move of House of Cards from Q1 to Q2 has impacted on operating margins, which rose to 9.7% in the first quarter.
The trend has confronted Netflix with more competition in the battle for household entertainment budgets. Netflix's services extend from $8 to $12 a month, with the most economical option at $10.
By comparison, Google says about 1 billion hours of video per day are watched on its mostly free YouTube service. Netflix said it will spend $1 billion marketing in 2017 to bring more attention to its shows.
Total revenues jumped to United States dollars 2.637 billion from 1.958 billion the year before and against the company's guidance of 2.5 billion.