Netflix’s Secret Weapon in the Streaming Wars: 90 Million Overseas Subscribers

Netflix has a secret weapon in the heated competition among content-streaming providers: Enough overseas subscribers to populate Canada almost three times over.
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Netflix  (NFLX) - Get Report has a secret weapon in the heated global competition among content-streaming providers: Enough overseas subscribers to populate Canada about three times over.

In a regulatory filing made by the Los Gatos, Calif.-based company on Monday, Netflix disclosed that it has some 90 million customers outside of North America, including 47.4 million in Europe, the Middle East and Africa, and 29.4 million in Latin America.

That puts the content provider well ahead of streaming rivals like Walt Disney's  (DIS) - Get Report Disney+, which debuted last month, Apple's  (AAPL) - Get Report AppleTV+, which also just recently debuted with the blockbuster hit, "The Morning Show," and AT&T’s  (T) - Get Report HBO Max, to be released in May 2020.

More importantly, it helps offset Netflix’s slowdown in U.S. subscriber growth, something analysts and investors have been concerned with, even as the company spends millions on original, high-production-value content to both keep and attract its subscriber base.

The company issued the information to prepare investors and analysts for its next quarterly earnings report, when for the first time it will break out both subscriber and corresponding financial data on a regional level.

Netflix has more than 60 million customers in the U.S., accounting for more than half of broadband-enabled homes. However, it is also on pace to record the fewest new customers since the company split its streaming service from its DVD business in 2011, according to Bloomberg.

Netflix will release its fourth-quarter earnings numbers on Jan. 21. Analysts polled by FactSet are currently expecting per-share earnings of 52 cents on revenue of $5.4 billion.

Shares of Netflix were up 2.16%, or 6.58 a share, at $310.79 in morning trading on Tuesday.