Netflix just had its biggest quarterly subscriber growth ever behind the strength of series like “The Crown” and the continued adoption of internet TV, but the streaming giant has no plans to wade into one of traditional pay TV’s few remaining moats — live sports.
On a Wednesday afternoon webcast discussing the company’s fourth-quarter earnings, CEO Reed Hastings responded to an analyst’s question about how Netflix has been able to achieve growth and what it would take to match the estimated 100 million households that pay for cable — about 50 million more than subscribe to Netflix — by mentioning one way Netflix would not try to close that gap.
“I think it’s really just this diffusion through society, as more and more people use Netflix we have better shows and more of them,” he said. “[But] in terms of getting to a true 1:1 tie ratio with cable, that includes a lot of sports, which we don’t have plans for.”
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Netflix has, however, continued to run up the score with its subscriber base, particularly internationally, adding 7.1 million new members last quarter, with 5.1 million of those outside the U.S. Fully 47 percent of Netflix subscribers are now located in international markets.
“The basic demand creation is increasing as people get more comfortable with internet television, where you don’t get the commercial interruption and you can watch when and where you want,” Hastings said.
But despite coming off its best quarter ever, Hastings and CFO David Wells warned against putting too much emphasis in any single three-month period, saying that can show “lumpy” growth which looks a lot smoother when analyzed on an annual basis.
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“The big picture is remarkably steady,” Hastings said.
Hastings and Chief Content Officer Ted Sarandos also shared insights into what Netflix programming is working particularly well internationally.
“You see shows like ‘Luke Cage’ and ‘Narcos’ that travel extremely well around the world,” Sarandos said, also mentioning “Gilmore Girls,” which surprised in its foreign appeal and “particularly performed great in Europe.”
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Netflix local language content, offered in 10 countries, also served as somewhat of a differentiator from existing options, Hastings said.
“We find it creates a lot of great excitement for Netflix in the market because it’s a really elevated form of television compared to what else is in the market,” he said.
Wells added that with many of Netflix’ original series going into their second, third and fourth seasons, they’ve had enough time to build a fan base and have their initial buzz trickle down to people who aren’t yet on Netflix — which could motivate them to sign up. He said shows into their second seasons and beyond tend to draw more subscribers than new originals, even successful ones such as “The OA.”
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Hastings said no single title tends to compel people to join the service, but a cumulative effect of hearing about different shows ultimately gives a lot of people enough fear of missing out that they pull the trigger for $7.99 a month.
“There’s a tipping point,” he said. “And that triggers you to sign up for Netflix.”
Netflix in January: What’s Coming and What to Watch Before It’s Gone (Photos)
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From the “Superman” movie series to the internet’s favorite “Bee Movie,” here’s what’s coming and going on Netflix next month.
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What’s Coming Dec. 27: “Chasing Cameron”
Social media sensation Cameron Dallas makes the leap to Netflix with a new unscripted series documenting his first world tour to meet his adoring fans.Netflix
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What’s Coming Jan. 1: “Bee Movie”
The internet’s favorite movie, the inexplicably strange “Bee Movie,” stars the voice of Jerry Seinfeld as a bumblebee who falls in love with a human.DreamWorks Animation
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What’s Coming Jan. 1: “E.T. the Extra-Terrestrial”
Steven Spielberg’s sci-fi classic stars Henry Thomas as a lonely young boy who befriends an alien stranded on earth. The film was inspired by Spielberg’s own imaginary alien friend, who helped him cope with his parents’ divorce.Universal
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What’s Coming Jan. 1: “Superman: The Movie”
Five “Superman” movies will hit Netflix in January, including 1978’s “Superman: The Movie” starring Christopher Reeve and 2006’s “Superman Returns” from director Bryan Singer and starring Brandon Routh.Warner Bros.
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What’s Coming Jan. 6: “One Day at a Time”
Norman Lear’s reboot of “One Day at a Time” for Netflix stars Justina Machado as a Cuban-American army veteran who relies on the help of her building manager and mother, played by EGOT-winner Rita Moreno, to raise her two kids.Netflix
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What’s Coming Jan. 7: “Miss Sharon Jones!”
Sharon Jones lost her long battle with cancer in November, but the unstoppable singer’s legacy will live on through her music with her band, the Dap-Kings. A portion of her inspiring story was captured in the 2015 documentary “Miss Sharon Jones!,” which features the poignantly titled single “I’m Still Here.”Starz
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What’s Coming Jan. 17: “A Series of Unfortunate Events”
Neil Patrick Harris stars in Netflix’s adaptation of the widely adored children’s book series “A Series of Unfortunate Events” from author Lemony Snickett.Netflix
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What’s Coming Jan. 17: “It Follows”
Maika Monroe stars in David Robert Mitchell’s critically acclaimed 2014 horror film “It Follows,” about a girl who’s pursued by a monster after a sexual encounter.Dimension
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What’s Coming Jan. 21: “Bates Motel” Season 4
A&E’s “Psycho” prequel series “Bates Motel” will come to an end after the upcoming fifth season, but that leaves plenty of time for viewers to catch up before the show introduces the iconic character Marion Crane, played by pop star Rihanna, in its final outing.A&E
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What’s Going Jan. 1: “30 for 30” series
Many of the films in ESPN’s “30 for 30” series are among the most compelling sports documentaries available on Netflix, but they will be removed from the streaming service next year, so it’s time to catch up.ESPN
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What’s Going Jan. 1: “Bring It On” and “Bring It On: All or Nothing”
The cheerleading comedy “Bring It On,” starring Kirsten Dunst and Gabrielle Union has achieved cult status. The sequel “Bring It On: All or Nothing” starring Solange Knowles and Hayden Panettiere, decidedly less so, but both are worth a watch.Universal
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What’s Going Jan. 1: “The Fast and the Furious” and “The Fast and the Furious: Tokyo Drift”
The “Fast and the Furious” franchise recently revealed the title of it’s eighth film, “The Fate of the Furious,” but the original installment, starring Vin Diesel and Paul Walker, is still available to watch on Netflix until Jan. 1.Universal
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What’s Going Jan. 1: “House Hunters”
“House Hunters” is the highest form of comfort-food TV, with easy-to-watch episodes that follow a predictable patterns. But Netflix will remove the brainlessly entertaining series — as well as the superior “Renovation” spinoff — in January.HGTV
