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Netflix blew past investor expectations Monday, adding more subscribers and revenue than forecast and plans to spend more on content than ever before.
Why it matters: It's another reminder for Pay-TV providers and TV networks that the traditional cable bundle can't compete with the power of on-demand.
The numbers also show how much bigger Netflix's subscriber base continues to grow compared to Amazon and Hulu, it's biggest on-demand rivals.
By the numbers, per CNBC:
- Revenue: $3.29 billion vs. $3.28 billion expected by Thomson Reuters
- Earnings per share: 41 cents vs. 41 cents expected by Thomson Reuters
- Total subscription additions: 8.33 million vs. 6.39 million expected by Netflix
- Domestic subscriber additions: 1.98 million vs 1.29 million expected by StreetAccount
- International subscriber additions: 6.36 million vs. 5.10 million estimated by StreetAccount
The company says it plans to spend up to $8 billion on content in 2018, up from roughly $7 billion in 2017.
In a twist, the company said it lost $39 million for content that was not released, which although not specified, could possibly be linked to shows and movies put on hold or cancelled due to sexual harassment scandals.