Last week, Facebook CEO Mark Zuckerberg testified on Capitol Hill about his company's data protection and privacy practices following news that data on up to 87 million Facebook users was leaked to a data analysis firm linked to President Trump's election campaign.
The results caused Netflix's stock to go up more than 6% in after-hours trading. No doubt expanding to more markets has definitely helped Netflix's cause, but at the same time the company has been busy churning out a ton of original content.
"I'm very glad that we built this business to not be advertising supported, but to be subscription", he said. Netflix added 7.4 million subscribers globally this quarter compared to estimates of just 6.35 million. And in the quarter before that, Netflix added 5.3 million subscribers after predicting it would add 4.4 million.
The company also said it expects to have $7.5 billion to $8 billion of content expenses this year, in line with previous estimates. As it has expanded to some 190 countries, investors accepted negative free cash flow in exchange for the potential of outsized growth in future years.
Los Gatos, California-based Netflix's first-quarter profit surged to $290.1 million or $0.64 per share from $178.2 million or $0.40 per share a year ago.
"Q1 scripted original series debuts included The End of the F***ing World and sci-fi thriller Altered Carbon, as well as returning seasons of Marvel's Jessica Jones, Grace and Frankie, Santa Clarita Diet, and A Series of Unfortunate Events", said Netflix.
Non-English programing is getting traction, " Netflix stated.
Meanwhile, Netflix has raised its US streaming prices twice since 2014.
"Netflix has changed the industry in a profound way and in doing so has given itself a significant lead, making it very hard for the traditional media companies, or even other big tech companies, to catch up", Deutsche Bank analyst Brian Kraft said.
Popular shows such as "Stranger Things", "House of Cards", and "Black Mirror" have enabled Netflix to keep attracting millions more subscribers each year while cultivating enough customer loyalty to be able to gradually raise its prices.
The business's market capitalization stands at $137.2 billion, over twice a year earlier. "The festival adopted a new rule that means if a film is in competition at Cannes, it cannot be watched on Netflix in France for the following three years".
Furthermore, Netflix differs from other tech companies, because it's much more focused on producing, acquiring, and licensing movies and television shows than it is on building technology, Hastings said. This was higher than the company's quarter guidance, due primarily to the timing of content spend.
For the second quarter, the company sees a small slowdown in the number of additions, expected at 6.2 million, including 1.2 million in the USA and 0.5 million global.
The company increased prices by 10% during the final quarter of 2017 to $10.99 a month for the standard Netflix service.