Netflix stock price jumps after hours on 7 million new subscribers

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Netflix is not looking to diversify to other areas for now, and is unlikely to feel compelled to for years to come, Reed told the post-earnings interview.

The additions helped lift profit more than threefold to 89 cents a share, beating the 68-cent average of analysts' estimates. Netflix doesn't break out its users by market, with the exception of the US, though most analysts agree that the U.K., Brazil, Canada and Mexico rank among the company's largest.

Netflix added 1.1 million subscribers in its domestic market, above the 674,000 additions forecast. "Amid these massive competitors on both sides, plus traditional media firms, our job is to make Netflix stand out so that when consumers have free time, they choose to spend it with our service", Netflix said.

Netlix shares surged more than 11 percent after the online TV service reported crowd-pleasing quarterly results after the market closed on Tuesday.

Netflix shares, already up about 78 percent so far this year, jumped 14 percent to $394.25 in after-hours trading, and boosted other high-tech stocks. Wall Street analysts had expected Netflix to add about 5.2 million streaming customers in the quarter. Said eMarketer media analyst Paul Verna. "The variance relative to forecast was due to greater-than-expected acquisition globally, with strong growth broadly across all our markets including Asia". Streaming revenue surged 36%, reaching almost $4 billion in the quarter - a performance that matched Wall Street's forecasts of $4 billion.

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Total streaming net change for fourth quarter: 9.4 million. The shares are up 80 per cent this year.

Executives said audiences welcomed shows tailored to specific markets, such as "Sacred Games" in India, which the company identified as key to its expansion.

The streaming superpower, which hit its $4bn (£3.03bn) revenue estimate, was under pressure to up subscriber growth after falling short of expectations in the previous quarter.

Netflix has upended the economics of pay TV by offering customers thousands of programmes on-demand for a monthly fee that's a fraction of the cost of a multichannel cable or satellite package. While the company reports a net profit, it spends more than it takes in and borrows frequently to finance its programming budget. In the fourth quarter a year ago, Netflix saw sales of $3.29 billion.

Netflix released a series original movies as part of its "Summer of Love" over the past few months, including "Set It Up", "The Kissing Booth", "Like Father", "Sierra Burgess Is a Loser" and the aforementioned "To All the Boys I've Loved Before".

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