With the rise of cable cutters and the adoption of streaming, Netflix is killing the game.
According to TechCrunch, the company gained 5.3 million new subscribers last quarter, with revenues of $2.98 billion.
850,000 of those new subscribers came from the U.S., with 4.45 million coming from international markets.
It seems Netflix’s success comes from its major investment in original content. In its announcement this week, the company said it planned to spend between $7 billion and $8 billion on original content next year.
“Our future largely lies in exclusive original content that drives both excitement around Netflix and enormous viewing satisfaction for our global membership and its wide variety of tastes,” the company said in its earnings release. “Our investment in Netflix originals is over a quarter of our total P&L content budget in 2017 and will continue to grow. With $17 billion in content commitments over the next several years and a growing library of owned content ($2.5 billion net book value at the end of the quarter), we remain quite comfortable with our ability to please our members around the world. We’ll spend $7 billion to 8 billion on content (on a P&L basis) in 2018.”
Earlier this year, reports said Netflix paid $105 million for Martin Scorsese’s upcoming mob film, The Irishman.