Netflix is preparing to celebrate signing up the 100 millionth subscriber to its online video streaming service, suggesting that people are more interested in watching TV shows and movies than in streaming music, according to an Atlanta Journal Constitution report.
The service added almost 5 million subscribers during the first three months of the year, and will end March with 98.7 million customers in roughly 190 countries.
Helped by a rally in technology stocks, Netflix has soared 15 percent this year.
In the first three months of the year Netflix has seen a growth slowdown.
Discussing the Q2 guidance, analyst David Miller said the company's earnings per share guidance of $0.15 was short of his estimate as well as the consensus estimate of $0.24.
TV streaming company Netflix is to heavily invest in its marketing drives in 2017 to entice subscribers in a bid to drive it past the 100m members waypoint.
Q1 revenue: $2.64 billion, up 35% year-over-year, versus Wall Street forecasts of $2.65 billion.More news: Jobs Report Shows Mixed Results, but Things Are Getting Better
For the quarter that ended March 31, Netflix added 3.53 million subscribers outside the United States.
By the end of March, Netflix had almost 48 million subscribers outside the United States.
Netflix, on the other hand, has no plans to do either. Other cable channels are also offering internet-only options as more viewers avoid other traditional TV packages and get a subscription for streaming services.
Shares of Netflix fell 2.3 per cent to $US143.80 in extended trading after results were announced. The company reiterated that it expects to burn $2 billion of cash in 2017 and stated "we anticipate negative FCF to accompany our rapid growth for many years".
Netflix's marketing budget has almost doubled over the past few years from $607,186 in 2014 to a forecast of more than $1 billion this year.
In any event, expect more original content to come to Amazon Prime Video as they look to narrow the gap on Netflix. He noted that the company was up against a hard sequential comparison because the fourth quarter was particularly strong as some subscribers whose prices were raised as a result of the un-grandfathering of their plans signed back up.