Orange is the New Green

What's next for Netflix, after 50 million subscribers?
5:30 | 07/22/14

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Transcript for Orange is the New Green
And it is Tuesday July 22 the New York financial markets are open in today's big number fifty million. That. Is how many subscribers Netflix -- Apparently it's not enough because three quarters of those cars -- United States Netflix CEO Reed Hastings says he's focusing now on -- up. The rest of the world. When I'm Dan Butler in your that he tells Laura -- -- finance. On this Tuesday morning Lauren so Netflix reporting that some healthy revenue growth but -- number sport. Sure so -- which is reported their earnings after the -- I can really been impressive number was the one you cited subscriber growth putting us subscribers -- the fifty million mark for the first time beating expectations. Earnings more than doubled for the company down their earnings per share day coming shy of analysts' expectations by a penny revenue one point three billion dollars right and -- One thing that they did say was they're forecasting that their earnings will be negatively impacting next quarter by their expansion overseas which is kind of -- -- hinted that we can get more into that. But -- time that people signing up for Netflix can argue are you -- customer. And fax full disclosure I am I am I am and it all goes well there. Well yeah I I use my boyfriend -- -- -- thanks but as I and I know that listen you know I use my boyfriends as well so I noticed that listen you gotta save everywhere you can't. -- the is that they have or just the new black they've got a heart about all this regional program and that's always been the big debate whether it's about creating content or -- -- distribution channels and it seems that Netflix is able to do well capitalized. Absolutely and -- it is the new black with a big winner for them -- the second season came out and out with a huge hit making it the most. As successful the series for the company and many people watch -- many people re watch the first season. And this was -- stand out for them that that was stood out and in their last quarter's performance so they're seeing success there. But the big thing -- that you pointed out is that in fact it's not over here in the United States but it is the world. That -- try to capitalize. Yes that's right so Dayton -- given this except that they've seen that in making moves abroad this is why the company is saying that they want to continue to make these investments. -- to expand their already in some areas in Europe they're already in Latin America. They want to -- expand to more countries in Europe which they have said before and they're on track they said and in this latest call. In September to launch in Germany and Austria and France and that's expensive for them can -- to invest in marketing so that people know you know what they aren't they also have to invest. In original programming bits you know applicable to those markets sent those -- couple reasons why they expect. -- to need to make those investments -- they want to continue to expand Christine thank you know helped and damp. The world happened Latin America so people landamerica it bought web enabled TVs and ordered -- watch -- -- into the World Cup. That helped to boost Netflix subscriptions in those countries is not -- You know that is really interest him because a lot of other media providers took a serious hit during the World -- -- -- -- -- likable -- saint. Their numbers viewership subscription rates have been dropping so actions that it was -- shift -- for Netflix. And that was it abducted trend today in the past Netflix has been negatively impacted as he said others have in this time. Based on benefit there and I guess also they reported the company. -- at users and Brazil -- bit bit -- Netflix on their big screen TVs there actually more loyal they watch more contents for longer says mr. In -- yes -- Hastings is obviously tapping into that a lot of the companies are trying to do the same thing when it comes streaming video but who isn't. Exactly and Netflix because you know we we look at the city -- we seen various search engines which will remain nameless but sometimes. -- -- -- -- try to jump into the same kind of game. -- -- ever -- trying to -- and you got apple TV you've got Amazon you've got Hulu I mean really you got all of that major networks and you know tech companies that are really media companies now so you have so many that are that are trying to get in this game would think just continued to point out is that you have other types. Businesses that are popping up. Sixty only trying to capitalize on Netflix model -- that flat fee that you pay monthly for kind of unlimited access you just sign Amazon and then announced there. Kindle unlimited which gives you unlimited access to books for ten dollars a months that's a good example also. Rent the runway which is that start up where you rank gallons to Wear for a night out they had just announced an unlimited service where you'll pay 75 dollars a month to get three. At designer items of your choosing for every day -- -- which and you trade and and and mailed back to the company when -- sickening get something new similar to that Netflix is dvd subscription model so. Fascinating times and. It is a classic and it's growing and the fact of the matter is that maybe a five or ten years ago a lot of people lot of cable subscribers were saying there's no way that we're held and it kind of strength over the cable companies because of rising cable costs. You start looking at some of these numbers and there is a little bit of help -- -- that there could be some changes in the way that we're gonna be in our content whether -- -- carte basis or just that bundle package. Yeah absolutely NEC that would Netflix I mean they're the most successful. Is subscription programming service -- United States and -- definitely reflect the changing times that weren't. Shall we say -- -- -- forgot -- finance on this Tuesday morning Laura thank you so much have a great day. Thanks and you -- and of course you can -- -- latest headlines for your abcnews.com. You've been -- the big number. -- -- --

This transcript has been automatically generated and may not be 100% accurate.

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