Investors expected Netflix to continue their rapid growth in the second quarter of this year, but they didn’t see this coming. In the second quarter of 2017, Netflix added more than 5 million new subscribers, blowing past expectations for both domestic and international growth.
1.07 million new subscribers were added in the United States and 4.14 million overseas, surpassing the projected 3.2 million total experts thought were on the way.
In a statement released to investors, Netflix noted that the second quarter was traditionally a weaker time for new subscribers. “We underestimated the popularity of our strong slate of content,” the release read, “which led to higher-than-expected acquisition across all major territories.”
Netflix is expected to add 750,000 US subscribers in the next quarter, and about 3.5 million internationally.
In their letter to investors, Netflix attributed the growth to their huge library of original content. Despite the cancellation of two of their prominent originals (The Get Down and Sense8), the company said they’ll keep focusing their efforts there. “As much as we dislike ending a series early, it consoles us that it frees up investment for another new show, or two,” the letter read. “We are programming to please our members and we keep that as our guiding light.”
The company pointed out that several of their new series – notably Stranger Things and 13 Reasons Why – had “a huge impact.”
“With our content strategy paying off in strong member, revenue and profit growth, we think it’s wise to continue to invest,” Netflix said.
At the end of June, Netflix has an estimated 104 million streaming subscribers – more than half of those coming from outside of the U.S.
Considering all of their growth, it’s tough to imagine, but the company has no signs of slowing. Their ultimate goal? “It’s been 20 years since Netflix was founded,” they said, “and we still thrive on connecting people with great stories. Someday, we hope to entertain everyone.”