Netflix’s International Business Continues to See Robust Growth

Netflix added 7.86 million paid subscribers overseas

Netflix (NFLX) has continued to see robust growth outside the United States. The streaming giant added a whopping 7.86 million paid subscribers overseas during the first quarter of 2019. Its international paid subscriber count now stands at 88.63 million, up 38.9% YoY (year-over-year).

Over the past several quarters, Netflix’s international subscriber base has been growing consistently by ~40% YoY. However, its growth has slowed slightly in the last few quarters. Meanwhile, its domestic subscriber growth has been slowing.

Netflix’s International Business Continues to See Robust Growth

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Netflix makes much more in the United States than it does internationally, where it’s seeing most of its growth. The company made $34.43 per paid subscriber at home in the first quarter compared to $26.7 per paid international subscriber.

Netflix has been adding content in foreign languages

Netflix’s robust international growth has been driving its recent growth. However, the company expects to add only 4.7 million paid subscribers overseas in the second quarter of 2019.

The company has been spending significantly on the production of content in English as well as foreign languages to attract international subscribers. In particular, it’s added several movies and TV shows in Spanish and Hindi. Netflix’s Spanish film Roma received accolades from critics after it was released in December 2018.

Netflix is particularly bullish about its growth in India, where it’s been adding to its slate of original content in Hindi following the success of Sacred Games.