Netflix added 3.2 million subscribers of its online video streaming service in the third quarter of 2016, beating its forecast of 2 million new subscribers and sending its stock price soaring by 20 percent on Monday.
The company attributed the better-than-expected growth to “excitement around Netflix original content” in its earnings report.
Netflix started commissioning its own movies and TV shows in 2012, and said it plans to spend $6 billion on original content in 2017. That will include more than 1,000 hours of premium original programming, up from over 600 hours this year.
Despite strong subscriber growth, Netflix admitted that it faces significant competition in its quest for viewers. The company expects stiffer competition than usual this fall from Amazon Video, which will release a new show based on BBC’s immensely popular “Top Gear,” starring British TV personality Jeremey Clarkson.
“We presume that Amazon Prime Video will become as global as YouTube and Netflix this fall with the launch of the Jeremy Clarkson show,” Netflix wrote.
As with any growing Internet business, Netflix also sees a mix of challenges and opportunity in China. In today’s report, the company said it currently has no plans to launch a Netflix-branded offering in China, but it will pursue licensing agreements with Chinese streaming services.
“We still have a long term desire to serve the Chinese people directly, and hope to launch our service in China eventually,” the company wrote.
