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Netflix overseas sales set to overtake US

From BBC - April 17, 2018

Netflix has said it expects its overseas sales to overtake those in its US home market for the first time in the next three months.

The forecast came after the streaming service reported the fastest revenue and subscriber growth in its history.

Netflix now has 125 million subscribers, after adding 7.4 million more between January and March.

Nearly three quarters of its new subscribers came from outside its home market in the US.

GBH Insights analyst Daniel Ives said the results showed "the company's aggressive international expansion strategy" was bearing fruit.

"[Is is] putting major fuel in the company's growth engine for the rest of 2018 and beyond," he added.

'Faster than expected'

Revenue grew 43% from a year ago, slightly above forecasts at $3.7bn (2.6bn), driven by the increase in new subscribers and a 14% rise in the average cost of a Netflix membership.

The results suggest Netflix's strategy of investing in original content such as The Crown and Stranger Things to drive subscriptions has worked.

The firm's executives admitted they were surprised by the company's rapid growth.

'Profound way'

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