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Netflix gains more than 13 million subscribe rs in the fourth quarter
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Netflix announced a major boost in sign-ups in the fourth quarter on Tuesday. The company added more than 13 million subscribe rs for the quarter, compared to Wall Street’s expectati on of 8.7 million.
While Netflix added 1.2 million paid subscribe rs in the fourth quarter in the US, much of the strongest subscribe r growth came internati onally from Europe and Asia.
Overall, Netflix now has a record number of subscribe rs at 260.3 million.
And investors seem to be cheering: Netflix’s stock jumped more than 7% in after-hours trading Tuesday.
Password sharing and Netflix’s foray into ads
In the past year, the company implement ed several initiativ es aimed at adding subscribe rs, including a password-sharing crackdown that pushed password “borrowers” into creating their own subscript ions and introduci ng an advertisi ng-supported subscript ion tier for $6.99.
The plan is significa ntly cheaper than Netflix’s ad-free offerings, at $6.99 per month in the US. In October, Netflix said it raised the price of its premium ad-free plan to $22.99 while its one-stream basic plan rose to $11.99.
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Earlier this month, Amy Reinhard, Netflix’s president of advertisi ng, said Netflix’s ad tier hit more than 23 million monthly membershi ps.
On Tuesday, Netflix sounded a positive note on its growing advertisi ng business.
On the company’s fourth-quarter earnings call, Netflix co-CEO Greg Peters said he had high hopes for Netflix’s ability to snatch ad dollars from tradition al TV competito rs.
“We know ad dollars follow engagemen t. We’ve got the most engaged audience so we believe we’re well positione d to capture some of that ad spend that shifts from linear to streaming,” he said.
In Tuesday letter to sharehold ers, Netflix declared its password-sharing crackdown a success, as well.