Netflix shares leapt nearly 7 per cent last night after it added more than 7.4million new subscribers.
In a blockbuster earnings announcement, the streaming giant said subscriber numbers grew 6.3pc to 125m in the first quarter, smashing analysts’ predictions.
The rise was driven by a 5.5 million increase in customers outside the US as revenue rocketed by more than 40 per cent in the past three months to £2.5 billion year-on-year.
Revenue has rocketed by more than 40 per cent in the quarter to £2.5 billion year-on-year
Netflix added nearly 2 million subscribers in the US, and said international subscriptions now account for 50 per cent of revenue and 55 per cent of subscriptions.
It plans to spend more than £5.6billion on 700 new shows this year, including a remake of the 1960s classic Lost in Space (pictured), and a new series of existing hits Orange Is The New Black and Narcos.
The California-based tech firm, which has customers in more than 190 countries, predicts it will add a further 6.2 million subscribers next quarter as consumers increasingly shun traditional television in favour of on-demand streaming services.
In a letter to shareholders, Netflix said: ‘We strive to entertain and to bring joy to people across the world through amazing stories.
‘Our 125 million members provided us with £2.5 billion in streaming revenue in the first quarter. Our job is to spend this money wisely to increase our members’ delight.’
Netflix shares were down 1.6pc as US markets closed. But shares rocketed 6.8pc in aftermarket trading. The announcement follows an investor backlash against technology stocks that wiped trillions off share prices in the wake of the Facebook data scandal.
Despite the sell-off, Netflix shares have climbed by more than 108 per cent over the past year.
On Friday, the streaming firm was boosted by a fresh tie-up with US cable giant Comcast, which has lodged a £22.1billion bid to snap up British satellite television provider Sky.
Under the terms of the deal, Comcast’s 22.5 million television subscribers will be able to add Netflix to their packages, opening up a huge potential new source of customers for the firm.
Separately, Netflix has followed the likes of Apple and Samsung in developing its own typeface in a bid to save millions of dollars a year in licensing fees.
Netflix Sans was developed with London-based typeface designer Dalton Maag and will be the font used on its streaming service.
Noah Nathan, Netflix’s design lead, told website It’s Nice That: ‘With the global nature of Netflix’s business, font licensing can get quite expensive.
‘Developing this typeface not only created an ownable and unique element for the brand’s aesthetic but saves the company millions of dollars a year as foundries move towards impression-based licensing for their typefaces in many digital advertising spaces.’