Netflix said it ended 2016 with 93.8 million subs worldwide after adding 19 million of them during the year, well up from additions of 17.4 million in all of 2015. Netflix also turned in its best ever quarter of net additions in Q4 2016.
Netflix, which celebrated the ten-year anniversary of its launch of streaming in Q4, also tallied $8.3 billion in global streaming revenue in 2016, up 35% year-over year.
Netflix shares were up more than 8% in early after-hours trading Wednesday.
In Q4, Netflix added 1.93 million U.S. streaming subs, for a total of 49.43 million, and expects to add 1.5 million in Q1 2017. Netflix posted Q4 U.S. streaming revenue of $1.4 billion, and expects it to rise to $1.47 million in Q1 2017.
On the international front, Netflix added 5.12 million streaming subs, expanding that total to 44.37 million, and is forecasting the addition of 3.7 million international streaming subs in Q1 2017. Netflix vastly expanded the global reach of its SVOD service almost a year ago.
Netflix added 7.05 million net new subs worldwide in Q4, easily stomping its forecast of 5.2 million.
“This was the largest quarter of net additions in our history and was driven by strong acquisition trends in both our US and International segments.”
Netflix posted Q4 total net income (including DVD results) of 67 million (15 cents per share), and expects that to hit $165 million (37 cents) in Q1 2017. That Q4 result included a $22 million foreign exchange adjustment due to strength of the U.S. dollar, Netflix explained in its letter to shareholders.
The company also noted that in 2017 it plans to invest more than $6 billion on content on a P&L basis, up from $5 billion in 2016.
Netflix also stressed an awareness that the new administration, led by president-elect Donald Trump, could result in weaker net neutrality rules, but held that it would be “unlikely to materially affect our domestic margins” if it were to occur “because we are now popular enough with consumers to keep our relationships with ISPs stable.”