Netflix Inc. added over 50 percent more subscribers than expected in the third quarter. Original shows such as "Stranger Things" drew new international viewers and kept U.S. customers despite a price hike, sending the company's shares soaring 20 percent in late trade. The company's performance represented a turnaround from the previous quarter of disappointing subscription growth. Netflix, which has spent heavily to expand outside its home market, also said that it was on track to start harvesting "material global profits" next year, even as it raised spending on original programming. Shares of Netflix rose to $119.82 in extended trade, from a close of $99.80.
We will keep investing in growing the content spend, even domestically, for quite a long time.Chief Executive Reed Hastings, in a webcast
Netflix has expanded into more than 130 markets worldwide, including most major countries, except China. It said on Monday that it was dropping plans to launch a service in China in the near term, opting instead to license its shows for "modest" revenue. In the meantime, Netflix plans to keep pouring money into building its stable of original and licensed TV shows and movies. Content spending will rise to $6 billion next year, a $1 billion increase from 2016, the company said.