3 Reasons Why Netflix Continues to Outperform

Netflix added 5.2 million new subscribers to its service in the recent quarter, bringing joy to the Wall Street. The analysts were expecting 3.2 million new subscribers in the quarter but Netflix outdid their expectations once again. While there are many other digital content services around, especially the likes of Amazon Prime Video, Netflix has continued to gain more subscribers. Here are three reasons why the digital content platform outperforms rivals.

Netflix

Stellar Subscriber Figures

 

It is clear that Wall Street focuses more on Netflix’s subscriber count than its actual earnings. In the age of digital content, creating and keeping subscribers could be more important than simply earning money. This quarter, analysts expected Netflix to add 3.2 million subscribers but the actual figure was higher. With 5.2 million new subscribers, Netflix gave an outstanding performance over the same quarter from the previous year. Shares of the company jumped by 10 percent post the data release. A high number of subscribers has kept the company afloat, even though it has deep-pocketed rivals like Amazon.

Netflix Offers Original Content

 

What drives Netflix Inc. (NASDAQ:NFLX) ahead of its competitors is its outstanding original content. The company boasts of popular shows like ‘The Crown’, ‘House of Cards’ and the latest Brad Pitt starrer ‘War Machine’. Apart from these, ‘Orange is the New Black ’, ‘Narcos, and ’13 Reasons Why’ have received massive appreciation from the audience, driving audience towards Netflix. In a letter to its shareholders, the company noted that the reason behind the increased subscriber count is its original content. 9 feature films, 14 original series and even 13 comedy specials were released on the platform.

Striking Overseas Presence

 

The company has experienced great subscriber growth overseas than at home. The company’s domestic subscriber counter went down by 25 percent during the quarter. Only 1.07 million subscribers were added domestically (though it is still better than second quarter 2016) while 4.14 million subscribers were added internationally.

The company is expecting another 4.4 million subscribers overseas in the current quarter, with now has more than 100 million subscribers. This figure easily outpaces amazon prime and hulu.

Apple is jumping into the original programing industry. Amazon and Hulu are already bringing more original content for their subscribers. This makes Netflix focus more on getting better number of subscribers overseas. The company is spending $6 billion to bring fresh and original content to its subscribers. The new company strategy is to create customized content in local languages to appeal more to foreign audience. For now, Wall Street is rewarding Netflix for better content.