by Jessica Klein
Netflix came out with its earnings report for the first quarter of 2015, and it turns out that the streaming giant has gained even more new members this year than it expected.
Instead of the 4.1 million new members forecasted for Q1 of 2015, Netflix got a record total of 4.9 million new subscribers during the quarter. Of those new members, 2.3 million came from within the US, while 2.6 came from international Netflix territories. Some of the international increase likely came from Netflix becoming available in Australia and New Zealand this past quarter, even though that took place towards the end of March.
Also helping the company’s cause, Netflix ended up spending less on content than it had projected, allowing the US contribution margin to reach 31.7 percent instead of about 30 percent. In the future, Netflix said that it will likely spend even less as it continues to expand globally, as more territories will be watching the same, original content, thus helping to absorb the cost. So as to continue this worldwide expansion, Netflix will allocate some of its U.S. marketing budget to use for international marketing costs in the next quarter.
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