Netflix Reports Record Earnings, Thanks to “Stranger Things”
Thanks to the massive success of Netflix's Stranger Things and Narcos, the company has reported record earnings.
According to the L.A. Times, third quarter earnings for Netflix were a record $2.15 billion, a 36 percent jump over last year, while adding 3.6 million new subscribers.
Netflix completely shattered expectations, gaining over 1.3 million more subscribers than the projected 2.3 million new users. And, the company credits the success of its original content, specifically Stranger Things and and Season 2 of Narcos.
"Our over-performance against forecast (86.7m total streaming members vs. forecast of 85.5m) was driven primarily by stronger than expected [customer] acquisition due to excitement around Netflix original content," the company wrote in its letter to investors. "Stranger Things is also notable as it is produced and owned by Netflix, which provides us with more attractive economics and greater business and creative control."
Additionally, Netflix says it plans to slowly break into the Chinese market in different ways. The investor’s letter noted, "the regulatory environment for foreign digital content services in China has become challenging. We now plan to license content to existing online service providers in China rather than operate our own service in China in the near term."
Netflix's record revenue numbers saw its stock jump 20 percent in after-hours trading.