Netflix’s subscriber base just got wider as the company announced yesterday it added over 8 million subscribers in the last quarter; the biggest surge in quarterly subscription in the company’s history.
According to Recode, Netflix hit a record 117.6 million subscribers last quarter, thanks to an addition of 1.9 million domestic and 6.4 million international streaming subscribers. About 55 million of those are U.S. subscribers. For comparison, there are about 94 million pay TV subscribers in the U.S.
Netflix attributed the increase in new customers in part to widely acclaimed original content slate which may include “Stranger Things,” Netflix’s breakout show, which returned for a second season during the quarter.
Also, the company’s stock shot over 8% in after hours trading Monday following the earnings report. If those gains hold, Netflix would open Tuesday at a new all-time high and top a $100 billion market cap for the first time.
Shares of Netflix soared more than 50% in 2017, and have continued to rise in the first weeks of 2018 on optimism about its leading position in the streaming market.
Netflix hiked prices 10% last quarter, bringing the cost of the standard streaming option up to $10.99 per month. On a conference call with analysts Monday, Netflix CEO Reed Hastings said the price increase had “very little effect on signups and growth.”
The key to Netflix’s continued success is a bet on original content, producing hit shows like “Orange Is The New Black” and “The Crown.” The company has said it will spend up to $8 billion on programming this year. Netflix also said Monday it intends to spend $2 billion on marketing.