Netflix has posted mixed quarter three results, seeing its net income fall year-on-year while subscriber numbers climbed during the quarter.Having enjoyed steep growth in the Australian market since its launch earlier in the year, Netflix saw its overall global membership grow by 3.62 million to 69.17 million, up from last year’s growth of 3.02 million and above its forecast growth of 3.55 million.
While Netflix exceeded its international growth target it failed to hit its forecast for US growth.
Netflix added 2.74 million international members, up from 2.04 million year-on-year, above its forecast of 2.4 million. US growth, meanwhile, came in at 0.88 million, down from last year’s 0.98 million, and below Netflix’s forecast of 1.15 million.
Netflix’s net income for the quarter of US$29.43 million was down from US$59.3 million year-on-year, while revenue rose from US$1.41 billion to US$1.74 billion.
Netflix stated that international contribution losses will grow sequentially in the fourth quarter, with its plan remaining to “run around break-even through 2016 and to deliver material profits thereafter”.
Separate Roy Morgan Research figures released today show that Netflix is now in over one in 10 Australian homes, with Netflix subscription rising 113,000 in September to 968,000, reaching 2.63 million Australians aged 14 and over.
Netflix has exceeded a 100,000 growth rate per month since its local launch in March, with younger households driving the numbers.
Just 1.5 per cent of older households have so far subscribed to Netflix, with Roy Morgan finding that if these households are excluded from its findings, Netflix can be seen in one in seven younger and mid-life Australian homes.