Netflix: Own content contributes to strong growth in subscribers

Netflix gained a large number of new members in the third quarter of 2016, the company reports in its quarterly figures. In their own words, self-produced content contributed to this growth. The total number of Netflix subscribers has risen to 86.7 million.

For example, 3.6 million members have been added in the past quarter, the service writes. In the second quarter, Netflix reported less good figures and the increase in new subscribers was 1.68 million. This meant that growth reached a low point over a period of three years. Netflix also says that total revenue for the third quarter amounted to approximately $2.3 billion, converted two billion euros. Earnings rose from $40.7 million in the second quarter to $51.5 million.

Netflix says its own productions, such as ‘Stranger Things’ and ‘Narcos’, have contributed to the growth in the number of new members. The service has plans to release 1,000 hours of its own content in 2017, this year it says it was 600 hours. To this end, Netflix is ​​expanding the budget for this type of content to about six billion dollars in 2017. The service says it is convinced that producing its own material will ultimately be cheaper than purchasing licenses.

The company adds that its own service is no longer planned in China, due to the strict supervision. In addition, it says it expects competition from Amazon Prime Video and the program The Grand Tour, which starts in the fall.