Netflix Continues to Grow Subscribers Internationally

Netflix’s international subscriber additions

In the first quarter, streaming giant Netflix (NFLX) added ~7.86 million international paid streaming members, exceeding its guidance of 7.3 million and analysts’ average estimate of 7.31 million. The company expects to add 4.7 million international paid subscribers in the second quarter.

Globally, the streaming giant added 9.6 million paid subscribers in the first quarter, reaching a total paid subscriber base of 148.9 million. Walt Disney’s (DIS) Disney+ is expected to add 75 million global subscribers by fiscal 2024, whereas Netflix is anticipated to have 200 million. Wedbush Securities predicts Apple’s streaming product will gain 100 million global subscribers in the next three years.

Netflix Continues to Grow Subscribers Internationally

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International streaming growth

Netflix’s international streaming paid memberships reached 88.63 million in the first quarter, beating the company’s expectation of 88.07 million. The membership base grew ~38.9% YoY (year-over-year) from 63.82 million and ~9.7% sequentially from 80.77 million. Netflix expects to reach 93.33 million international paid subscriptions in the second quarter.

In the first quarter, Netflix’s international contribution expanded to 11.6% YoY and sequentially from 9.8% and 3.9%, respectively. The company’s fourth-quarter international contribution was pinched by original content and marketing investments. Netflix anticipates an international contribution of 15.5% in the second quarter. The company is working on raising its subscription prices in Brazil (EWZ), Mexico, and parts of Europe (EFA), which could help the company draw more revenue from international markets.