Netflix adds 7.4mn subscribers in Q1 2018 beating estimates
Netflix has beaten estimates again, adding 7.41mn subscribers compared to the predicted 6.5mn during Q1 2018, with the US streaming giant having now hit the 125mn mark.
The positive results in the quarter follow a strong Q4 2017 where Netflix also exceeded expectation by a margin of 2mn subscribers in which the company added a total 8.33mn for the three month period ended December.
Having reached a valuation of over $100bn for the first time off the back of the 2017 results, Netflix has continued to go from strength to strength as is reflected in the latest quarter, largely driven by the company's emphasis on in-house content development.
“We believe our big investments in content are paying off,” Netflix said. “In 2017, average streaming hours per membership grew by 9% year-over-year. With greater than expected member growth (resulting in more revenue), we now plan to spend $7.5-$8.0bn on content on a P&L basis in 2018.”
Further, Netflix has expanded its marketing budget for this year from $1.3bn to $2bn.
Most recently, the company reportedly placed a bid $300mn acquisition bid for Regency Outdoor Advertising as part of this wider investment strategy.