Netflix reported that its sales in the fourth quarter of 2019 rose 30.6 percent on-year to $5.5 billion. Paid subscription accounts rose 21 percent on average to 167 million units compared to the previous year.
Paid subscription accounts outside the U.S. surpassed 100 million for the first time. The increase in paid subscription accounts in APAC (Asia-Pacific, 16.23 million), EMEA (Europe, Middle East, Africa, 51.78 million), and LATAM (Latin America, 31.42 million) is the largest in four quarters. The number of paid subscription accounts in North America reached 67.76 million in the corresponding quarter. Expanding 550,000 from the previous quarter.
Netflix said that while the increase in paid subscription accounts in North America was smaller than in other regions. Steady growth is encouraging considering that Netflix streaming services in the U.S. started in 2007. About 10 years earlier than in other regions. Sales also exceeded forecasts. Netflix shares have been on a steady rise since September 2019.
When asked about Netflix 2019 response strategy amid intensifying competition in the market, Netflix CEO Reed Hastings said, “Netflix has been listening to its members’ voices so far and has been working on the strategy, thinking about what content and products can bring joy to everyone”. He adds, “The next 10 years will take the same strategy. If there is any remaining homework, it will be how well we can do this”.
Netflix has made it clear that it will continue to invest in South Korean contents this year following 2019
Korean content receives love not only in Korea and Asia, but around the world, said Ted Sarandos, chief content officer of Netflix. Korean original content has earned huge popularity. Last year mini series “Kingdom” has made a hit and it is expecting the second season scheduled this summer.
Sarandos stressed that there are no borders for good stories. He used the Grammy winner “Parasite” movie as an example.
Previously, Netflix announced that it will invest more for original content in 2020.
