Number of Netflix users rises by 7 million

Netflix gained 7 million users in the past quarter. In contrast to the previous quarter, growth was higher than the company expected. Netflix further criticizes the quota for European content.

Netflix received 7 million new users in the past quarter, of which 6 million paid. That was 31 percent more than the 5.3 million new users in the same quarter last year and also more than the 5 million Netflix had expected. The higher-than-expected growth occurred in all markets worldwide, according to the company.

For the coming quarter, Netflix expects to be able to add 9.4 million new users, of which 7.6 million are paying. That would be 13 and 15 percent more than last year, respectively. In total, Netflix now has 130.42 million paying customers.

Netflix attributes the growth to the addition of new videos, and those investments have been made possible by the price hike, the company says. “We foresee that to continue for many years into the future,” the company said in a statement to its quarterly earnings. The company says it must continue to differentiate itself, with major competition from Disney, Apple and Amazon on the way.

Netflix also reports that it can meet the European Union’s requirement for at least 30 percent local videos, but the company speaks out against such measures: “Quotas, regardless of market size, can negatively affect both the customer experience and creativity.” According to Netflix, countries should encourage local content creation, regardless of the distribution channel.

Netflix’s quarterly revenue grew 34 percent to $4 billion.