Will Netflix’s Compelling Content Fuel Its Rise in Subscribers?

Netflix in the United States

While Netflix (NFLX) appears to be slowing down in the United States (SPY) following its 1Q17 results, the company still seems to be on a roll in international markets. At the end of 1Q17, Netflix had net additions of 1.4 million new members, falling short of its internal forecast of 1.5 million members.

Netflix has attributed its lower-than-expected US net additions to its shifting of the premiere of Season Five of the popular House of Cards to 2Q17 instead of 1Q17. Netflix seems to be on a roll when it comes to providing compelling content to its viewers. Ellen DeGeneres recently signed to do a show on the service.

Will Netflix’s Compelling Content Fuel Its Rise in Subscribers?

This year, the company expects to spend $6.0 billion on content and produce 1,000 hours of original programming. Netflix is also increasingly focusing on original movies. It believes that by producing original movies and releasing them simultaneously in theaters and on its online service, it’s offering subscribers the latest in quality content.

Netflix in international markets

Netflix is soaring high in international markets and expects international revenue of $1.1 billion in 2Q17. Currently, ~47% of its members come from international markets.

Netflix currently offers a mix of local and English-language content to its subscribers. The company believes that as its original content becomes popular and awareness of Internet television rises, its number of international subscribers will also rise.