Netflix is officially a global powerhouse now

Netflix’s Spanish original series “La Casa de Papel” has become popular with members outside its native language. 


Netflix

Netflix can make a claim to being media king of the world now, booking more sales for streaming outside the US than in it for the first time. 

But overall subscribers grew less than predicted in the streaming-video company’s second-quarter report, missing its own guidance by more than a million members Monday. 

Wall Street was unforgiving. Shares tanked 14 percent lower to $345 in after-hours trading.

A milestone for Netflix’s ambitions to be a global powerhouse, the company made more money streaming outside the US for the first time. It’s a revenue tipping point that underscores similar changes in the shows and movies available for you to watch worldwide. With more of its money coming from abroad, more and more of Netflix’s originals cater to specific countries and regions. Netflix, for example, released its first original series from India, Sacred Games, earlier this month. 

But Netflix has found its members around the globe watch these locally targeting originals. Netflix has touted its originals that get binged heavily across borders, like Brazilian dystopian thriller 3%, Spanish heist series La Casa de Papel (marketed in English on Netflix as “Money Heist”) and German sci-fi mystery Dark. Netflix has even invested in expansive subtitling and dubbing systems to make its international productions available for the widest audience outside each title’s native language. 

In a letter to shareholders Monday, Netflix said said The Rain, a Danish original thriller released in the period, was one of the service’s “biggest non-English original productions yet with viewing all over the world,” without providing specific viewership figures. 

“This serves as another data point that our international originals can be important to specific countries and regions and also play well outside of their home markets,” the company said. 

It comes as Netflix is knocking crowns off the heads of traditional media titans. During the latest quarter, Netflix unseated Disney as the most-valuable media company in the world by market value. And then Netflix last week beat HBO for the most total Emmy nominations, unseating the premium cable network’s 17-year streak on top. 

In its results, international subscriber base grew to 72.76 million members, missing than the 73.29 million the company predicted. In the US, Netflix reported 57.38 million, shy of its 57.91 million guidance.

Looking ahead, Netflix expects to add 4.35 million streaming members abroad and 650,000 in the US in the current quarter. 

Netflix’s had tough comparisons to last year in its release schedule in the recent quarter. A year earlier, 13 Reasons Why became enough of a young-adult phenom to prompt schools to send home warning letters to parents, and new seasons of big-time programs Orange Is the New Black and House of Cards premiered. This year, 13 Reasons Why’s second season had more of a more muted response, and the next seasons of Orange Is the New Black and House of Cards are coming out later in the year.

Issuing guidance for its next quarterly report, Netflix predicted 68 cents per share in earnings in the third quarter on $3.988 in revenue. On average, Wall Street analysts who track Netflix expected 73 cents and $4.13 billion, respectively.

Overall, Netflix reported a profit of $384.4 million, or 85 cents a share, compared with $65.6 million, or 15 cents a share, a year earlier. Revenue rose 40 percent percent to $3.91 billion.

Analysts on average expected per-share profit of 79 cents — matching Netflix’s guidance — and $3.934 billion in revenue.

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