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Netflix adds seven million new customers

Netflix adds seven million new customers

Netflix has added as many as seven million new customers in the three months to September.

The impressive growth of the streaming service has seen the company's subscriber base swell to 137 million, prompting Netflix shares to climb by 11 percent in after-hours trading.

The growth has coincided with Netflix screening a record amount of original programming, including the new season of 'Orange Is The New Black'.

This year, Netflix intends to spend an eye-watering $8 billion on content, with more than a quarter of the money being used for the purpose of original programming.

Netflix explained to its investors: "We recognize we are making huge cash investments in content, and we want to assure our investors that we have the same high confidence in the underlying economics as our cash investments in the past."

George Salmon, a Hargreaves Lansdown analyst, is impressed by the company's latest set of results.

He told the BBC: "Heavy investment in content means free cash flow is still negative, but after a disappointing second quarter this release was all about subscriber growth.

"There's also very upbeat guidance around customer additions in the final quarter of the year, with the group's forecast of 9.4 million well above prior expectations. If video killed the radio star, Netflix is well on the way to taking cable's crown."

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