Netflix Shares Rise on Strong Earnings Bolstered by International Growth

Netflix Shares were Trending Up Yesterday Afternoon, Thanks to a Strong Earnings Report from the Streaming Video Giant. The Company Posted More than $83 Million in Profit for the Final Quarter of 2014, Nearly Double What Analysts had been Expecting. International Growth was the Big Story. While Netflix Added 1.9 Million US Subscribers, a Small Decline from the Same Period in 2014, it Saw a Big Jump in International Customers, Adding over 2.4 Million New Users, a Roughly 40% Increase over the Same Period in 2014. "Our international expansion strategy over the last few years has been to expand as fast as we can while staying profitable on a global basis. Progress has been so strong that we now believe we can complete our global expansion over the next two years, while staying profitable, which is earlier than we expected." The Company Said that, Aggressive International Expansion would Mean Profits would be Smaller in 2015 than 2014 but, it "intend[s] to generate material global profits from 2017 onwards". Netflix is Now Available in around 50 Countries and has its Goal on Serving More than 200. One Big Question Mark in that Path, as with Many Internet Companies, is China. "For most countries we have a good idea of the best approach for Netflix to take. For China, we are still exploring options — all of them modest. We’ll learn a great deal if we can successfully operate a small service in China centered on our original and other globally-licensed content. That is our preference, for the next few years, if we are able to acquire the necessary permissions." The Company is already Learning the Craft of Creating its Own Original Content. But, with International Growth, Netflix Hopes to Become a Distribution Giant that would Rival the Hollywood Studio System. "It is advantageous for Netflix to become global in many ways", Wrote CEO, Reed Hastings. "The big one is absolute size (faster to $10B in revenue) because, that revenue allows us to develop and license more content for our members and improve our service. A second is being able to source great stories from around the world and deliver them to the world. A third is the efficiency and influence of being a unique global licensor that provides worldwide distribution." One Market Netflix Won't be Entering Soon is North Korea. The Company Announced in its Investor Letter Today that, it will Begin Streaming Sony Pictures 'The Interview' Starting January 24th.