Netflix Enjoys 20% Growth Thanks To Huge International Subscriber Boost

Netflix subscription numbers are booming right now thanks to the increase in the total number of new subscribers around the world. This is a huge accomplishment for the online movie streaming service, partly because Wall Street has been warning investors to stay away from the company in lieu of supposed impending subscription slowdown.  

As Fool reports, subscriber growth for Netflix did drop during Q2, which seemed to support the notion that the streaming company was becoming an unappealing investment prospect. By the time the Q3 report came around, however, the doubters were buried under a heap of millions more Netflix subscribers. These bombastic numbers are also being taken as a sign of great things to come for Q4.

In terms of the company’s Q3 forecast and the actual report, it would seem that Netflix met most of the figures and then some. Income for the quarter was at $2.16 billion and domestic subscribers grew by 370,000, which is 70,000 more than expected.

As for the international subscribers, 3.20 million were added for Q3; a full 1.20 million more than forecasted. It is worth noting, however, that the $69 million international contribution profits did not meet the forecasted number of $95 million. So there are some downsides to the story.

The domestic subscriber growth is notably slow as well, which is being attributed to a combination of factors, including seasonality and the reduction of users with unlimited data plans by carriers. This doesn’t change the optimistic outlook for Q4, however, if for no other reason than because Netflix has always performed well during this time of the year.

Last quarter, the company’s stock fell due to lackluster subscription growth, CNN Money reports. This resulted in nervous investors who were so shaken by the jarring development that Netflix CEO Reed Hastings actually had to apologize for the sudden shortfall. It would seem that a repeat of the event is not expected this time around.