Streaming video service Netflix said it will complete its expansion into 200 countries within two years, faster than expected, as the company builds its presence overseas while growth in the US slows.
Netflix said last night it added 4.3 million subscribers in the quarter that ended in December, beating its own guidance thanks to higher than expected interest overseas.
Investors welcomed the news, sending shares up 15% in after-hours trading on Wall Street.
In the US, Netflix pulled in 1.9 million streaming customers, down from 2.3 million additions a year earlier, and forecast signing up 1.8 million more in the current quarter.
Netflix believes the slowdown is "a natural progression in our large US market as we grow," the company said.
In international markets, however, "progress has been so strong that we now believe we can complete our global expansion over the next two years, while staying profitable, which is earlier than we expected," it said.
Netflix added 2.4 million customers in its roughly 50 international markets, bringing its global total to 57.4 million worldwide.
New markets will include a "modest investment" in China, the company's chief executive Reed Hastings said on a conference call.
Netflix needs a licence to operate in the country, and "it's not 100% clear we'll be able to do that," he said.
The company also said it will increase the percentage of content spending devoted to original series such as "Orange Is the New Black" and "House of Cards," and will finance the expansion with long-term debt.
It is investing in original shows as it faces competition from Time Warner HBO, Amazon.com and Hulu, as well as on-demand offerings from pay TV providers.
For the quarter that ended in December, Netflix said its net income rose to $83.4m, or $1.35 per share, from $48.4m, or 79 cents per share, a year earlier.
Revenue for the three month period rose to $1.48 billion from $1.18 billion.
