Netflix has reported its fourth quarter results for 2016, revealing the largest subscriber gain in its history.
This quarter marks the 10th anniversary of its streaming service.
In 2016 Netflix generated $8.3 billion [all amounts USD] in global streaming revenue (35% YOY growth) and finished the year with 93.8m members with 19.0m net additions vs 17.4m in 2015.
In Q4 Netflix added 7.05m net new members globally in the quarter, against its forecast of 5.20m and last year’s Q4 performance of 5.59m. This was the largest quarter of net additions in Netflix’s history and was driven by strong acquisition trends in both the US and international segments.
International membership grew by 5.12m in Q4, against a forecast of 3.75m and 4.04m in the year-ago quarter. Over 47% of Netflix’s total members are now outside of the US.
Netflix noted in an earnings release that there is plenty of competition chasing its audience:
Amazon Prime Video expanded recently to match our territory footprint, while YouTube remains far larger than either of us in terms of global video enjoyment minutes. Video consumption is growing on Facebook, and Apple is rumoured to be adding video to its music service.
The BBC has become the first major linear network to announce plans to go binge-first with new seasons, favouring internet over linear viewers. We presume HBO is not far behind the BBC. In short, it’s becoming an internet TV world.