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Netflix market cap passes $100 billion for first time

By
Daniel Uria and Susan McFarland
Netflix announced it added a record 8.3 million subscribers in its fourth quarter report, released on Monday. File Photo by Atelier_A/ Shutterstock.com
Netflix announced it added a record 8.3 million subscribers in its fourth quarter report, released on Monday. File Photo by Atelier_A/ Shutterstock.com

Jan. 23 (UPI) -- Netflix shares surged during premarket trading Tuesday, after Monday's announcement that the company added a record number of subscribers at the end of 2017.

Netflix shares rose 9 percent Tuesday, reaching $248, mounting to a record high that takes its market capitalization past $100 billion for the first time, surpassing rivals such as Time Warner and 21st Century Fox.

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The streaming service added a total of 8.3 million subscribers during its fourth quarter, the highest net adds in its history and an increase of 18 percent from the previous record set last year.

"This exceeded our 6.3 million forecast due primarily to stronger than expected acquisition fueled by our original content slate and the ongoing global adoption of internet entertainment," Netflix said.

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Netflix added 2 million subscribers in the United States and another 6.3 million internationally as the service continues to expand into new markets.

The historic surge in subscribers came after Netflix raised the prices of its streaming plans by as much as $2 per month.

Original series such as 13 Reasons Why and Stranger Things as well as the original film Bright were highlighted as some of the strongest performers on the service.

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Netflix said it plans to spend between $7.5 billion and $8 billion on content in 2018.

The company also addressed potential competition following Disney's $52 billion deal to buy 21st Century Fox's television and film studios, with plans to launch its own streaming service.

"The market for entertainment time is vast and can support many successful services," Netflix said. "In addition, entertainment services are often complementary given their unique content offerings."

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Last year, Netflix added 24 million new subscribers, up 26 percent from 2016 to take its worldwide total to 117.6 million.

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