He's forecasting USA customers will increase by 850,000, about 100,000 more than Los Gatos, Calif. -based Netflix projected in July, which would bring the company's US total to 52.8 million. The move has paid off as the company's most recent fiscal period yielded great results. And the company doesn't expect the growth to slow down any time soon - Netflix is projecting that it will add 6.3 million total subscribers in the fourth quarter.
Netflix today once again showed that its subscriber growth is on a tear - especially its growth internationally - but a note in the report may indicate one of the biggest challenges the company faces going forward.
In a statement announcing its results, Netflix left little doubt regarding how it views original programming in relation to its position in the video-streaming industry.
Netflix plans to ramp up its spending on shows and movies.
Netflix added 5.30 million subscribers globally in the quarter, easily beating its forecast of 4.40 million, to end the quarter with 109.25 million subscribers.
For the third quarter, the company forecasts a $576-million profit from its domestic streaming operation and $30 million from global.
The company's net income rose to $130 million, or 29 cents per share, in the latest quarter from $52 million, or 12 cents per share, a year earlier. In the long term, the company says it might not need the content anyway. In a letter to shareholders Monday, the company wrote that the higher revenue from the price bump will help it widen its slate of originals even more.
This growth came as Netflix continued to burn through cash to develop new programmes, saying its future "largely lies in exclusive original content". Fourteen analysts surveyed by Zacks expected $2.97 billion.
Netflix's revenues for the quarter rose to $2.98 billion from $2.29 billion past year. Executives had previously said they expected to spend $7 billion in 2018.
"With $17 billion in content commitments over the next several years and a growing library of owned content. we remain quite comfortable with our ability to please our members around the world", Netflix said.
With an ever larger subscriber base, "we can pay more for a piece of content or we can put more on the screen", chief financial officer David Wells said at a Goldman Sachs conference in September.
Netflix (NASDAQ:NFLX) last released its quarterly earnings data on Monday, October 16th.
The company's shares, which touched a record high on Monday, rose almost 2 percent to $206.50 after the bell.