Netflix scores a boost in users from the World Cup
Published 23/07/2014 | 02:30
The World Cup is fuelling Netflix's global ambitions.
The dominant online-subscription service posted second-quarter customer gains that beat its own forecast, reaching more than 50 million subscribers worldwide.
Soccer fans in Latin America snapped up Web-linked TVs for the World Cup and then signed up to stream shows like the hit series 'Orange Is The New Black'.
Markets such as Brazil are turning profitable and setting the stage for the company's next expansion - in Germany, France and four other European countries - starting in September.
Chief executive Reed Hastings has made it clear he's willing to sacrifice profitability to extend his lead in online television.
"We hope it's similar to our success in the past, where there are significant upfront losses that abate over the coming years," Mr Hastings said.
"Our long-term guidance is to run the company at break-even as we're engaging in this international expansion."
The company's profit rose to $71 million (€53m), or $1.15 per share, from $29.5 million, or 49 cents per share, a year earlier. Revenue rose to $1.34bn from $1.07bn.
In the second quarter, the company added 1.69 million online video subscribers, reaching 50.05 million worldwide.
The new season of 'Orange Is the New Black' emerged as a big draw.
Irish IndependentFollow @Indobusiness