Netflix released its Q2 earnings report yesterday, and though it didn’t surpass analysts’ expectations, the news is generally good. Netflix led the report by announcing that 15 years after launching, it now has over 50 million members in 40 countries. The company recognizes that much of its recent growth can be attributed to the success of ‘Orange is the New Black.’ The company’s “U.S. member base grew to more than 36 million on the strength of our ever-improving content offering, including Orange is the New Black Season 2. For Q3, we expect about 1.3 million net additions, comparable to Q3’13 in which we premiered Orange Season 1. We are pleased our net additions in the U.S. remain on par with last year.”
In addition to the potential of adding many more U.S. customers, the company has only scratched the surface abroad. Netflix saw 78% year-over-year international subscriber growth, with 13.8 million subscribers at the end of Q2.
Here are other highlights from Netflix’s earnings report, which have far-reaching implications across the digital, social TV, connected TV, and over-the-top landscape:
– In September, Netflix will be launching in Germany, France, Austria, Switzerland, Belgium, and Luxembourg.
– Its launch into these markets “with over 60 million broadband households will significantly increase our European presence and raise our current international addressable market to over 180 million broadband households, or 2x the number of current U.S. broadband households.”
– Its launch into these markets will still only reach about one-third (271 million of 728 million1 ) of current global broadband households.
– In its first month, the second season of ‘Orange is the New Black’ became the most watched series in every Netflix territory.
– Netflix original series and documentaries received 31 Emmy nominations.
– Later this year, Netflix will be introducing physical gift cards stores in the U.S., Canada, Mexico, and Germany.
– The company will continue to pursue over-the-top integrations (Virgin Media and Google’s Android TV).
– It is making available its most popular content for 4K Smart TV viewing. Netflix will benefit from early adopters of this state-of-the-art TV technology “as linear TV will be late to switch their networks to UHD 4K.”