Netflix (NASDAQ: NFLX) continues to grow, adding 5.3 million net subscribers this past quarter.
The company also says it’s willing to spend the money to continue that trajectory, with a new content budget of between $7 billion to $8 billion for next year. The figure is up from the $7 billion figure chief operating officer Ted Sarandos previously said to Variety magazine.
"While we have multi-year deals in place preventing any sudden reduction in content licensing, the long-term trends are clear," the company said in a letter to shareholders. "Our future largely lies in exclusive original content that drives both excitement around Netflix and enormous viewing satisfaction for our global membership and its wide variety of tastes."
Netflix latest earnings report beat analysts' estimates, mostly on the back of its high number of subscription additions. The company reported earnings on Monday after the bell.
Revenue was $2.98 billion vs. $2.97 billion expected. Earnings per share were 37 cents per share versus 32 cents per share, adjusted.
Subscriber net adds were 5.3 million versus 4.5 million.
The company now has about 109.3 million subscribers globally. Netflix said it added 850,000 subscribers in the U.S., ahead of the 810,000 estimate for the quarter. It boomed internationally, signing up 4.45 million subscribers versus the 3.69-million-unit estimate.
Share prices were down $1.32 to $201.36 Tuesday morning.
