Netflix Q4 Subscription Adds 7.05M And Sets Record, Shares Jump 8%

The most popular paid video streaming service in the U.S. just blew through its Q4 subscription estimates when it added 7.05 million new subscribers. As a result, Netflix is solidly in the black in terms of viewers and saw a significant jump in its shares.

Netflix shares jumped 8 percent by the time the markets closed on Wednesday following the movie streaming company’s phenomenal subscription performance, Variety reports. Adding 1.93 million users in the U.S. and 5.12 million subscribers internationally, the company set new records on quarterly subscription numbers.

Previously, the streaming service provider only estimated an addition 1.44 million U.S. subscribers 3.74 global gains. Suffice it to say, the final numbers have made investors incredibly happy.

Q4 2016 revenue by Netflix was reported at $2.48 billion as well, which was practically the same as the $2.47 estimate that analysts at Wall Street had set. On that note, net income did stand at $66.7 million, which was a little bit more than the estimated $58 million.

According to the company’s own report, global revenue rose 41 percent year over year. Netflix recently celebrated its 10th anniversary and it certainly had plenty to celebrate, including the contribution profit jump to 74 percent year over year at $470 million. That comes with a healthy 20 percent margin, as well.

As to why Netflix saw such encouraging progress, among the biggest contributors to its success, are its original programs, Reuters reports. These include the Marvel small screen adaptation of “Luke Cage” and the smash hit “The Crown,” which is a British drama about a young Queen coming into her own.

Thanks to the popularity of these shows, competitors are now starting to take notice and adapt. Amazon and BBC are reportedly creating their own programs that will take advantage of the binge-watching habits cultivated by Netflix.