Netflix is growing faster than ever. In the fourth quarter of 2016 the streaming giant added 7m new subscribers and is fast approaching the 100m milestone. In 2017, Netflix will spend $6b on content and $1b on tech and development.
A record quarter
Netflix has more streaming subscribers than the total music industry, according to IFPI. It may seem strange to compare the two but it says something about how large Netflix has become.
The fourth quarter of 2016 was a record quarter for the company in more than one way, and in fact growth is accelerating.
To put things in perspective we have made a list:
Netflix added more subscribers in the last quarter than in any previous quarter: 7.05 million
Netflix has 93.8m subscribers and expects to have 99m at the end of March 2017
Netflix is planning to spend $6 billion dollars on content in 2017 alone
Netflix is planning to spend $1 billion dollars on tech and development in 2017 alone
Netflix will soon have as many international subscribers as US subscribers (49.43m vs. 44.37m)
2017 will be the year when Netflix tries to take on Hollywood by bringing in stars like Brad Pitt and Will Smith
Netflix has taken on debt to finance its explosive investments in content but is improving its profitability quarter-by-quarter and realized a net income of $186m in 2016
The next decade for Netflix
Financing and producing movies will require Netflix to invest more significant sums and take bigger risks than it has in the past so as a customer one could fear that the company could hike prices.
- “We don't have any plans for any near-term changes,” said Reed Hastings, Netflix CEO.
The quarter marks the 10-year anniversary of Netflix’s streaming service and the company concludes that “Internet video is a global phenomenon”.
- “The next decade will be even more amazing and tumultuous as internet TV supplants linear TV, and as we strive to remain a leader,” said Netflix in its Q4 2016 report.
2017 will give us the first indication of whether or not Netflix can take on Hollywood. There are several big titles planned but of course that is no guarantee.