A decade after shaking up Hollywood by delivering TV shows and movies over the internet, the company said it expects to top 100 million global subscribers this weekend.
Netflix has expanded around the world over the last few years, betting that its U.S. formula would pay off in other countries. Opening in new markets and creating shows in additional languages was an expensive proposition.
Chief Executive Reed Hastings urged investors to look at its growth over time rather than quarter-by-quarter fluctuations.
“We definitely see a big opportunity around the world,” Hastings said in an interview with analysts that was posted on YouTube.
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In its quarterly letter to shareholders, Netflix asked investors to judge its future success by looking primarily at revenue growth and global operating margins.
That would be a shift for Wall Street, which has focused on subscriber numbers, said Needham & Co analyst Laura Martin.
“The minute you actually pivot (investors) to an income statement, you’re talking to a completely different kind of investor,” Martin said. “And that investor demands profitability. So it’s a risky business.”
