Netflix expects to gain an additional 6.1 million members this quarter thanks to it now being a virtually global service following its expansion to 130 more markets.
Its net additions in international markets are forecast to reach 4.35 million in Q1 compared to 2.60 million in the same period last year, while those in the US will only amount to 1.75 million, down from 2.28 million.
In its latest set of results, the streaming service says it added a record 5.59 million members in Q4 2015, ending the year with 74.76 million. Despite challenges in foreign exchange, it remained profitable in the quarter, posting operating and net incomes of $60 million and $43 million respectively. It expects similar modest operating income results in Q1, assuming current foreign exchange rates, as it invests in its international expansion.
International launches in Japan (September), followed by Spain, Portugal and Italy (October), contributed to a loss of $109 million in Q4, and the company forecasts an international loss of around $114 million in this quarter.
Commenting on China, the one major market Netflix is not yet available in, the service says that is expectations are “modest and long-term”. While it may be able to launch in the country this year, it could take longer.
Netflix’s total streaming revenues in Q4 amounted to $1,672 million ($1,400 million in the same period a year earlier), with the figure forecast to increase to $1,813 million in this quarter.
The international segment accounted for $566 million ($415 million) and should reach $653 million in Q1.
