Netflix says it expects a 60% increase in year-over-year net additions — to 1.60 million — in Q1 2014. “We’ve seen increases in consumer brand awareness and likelihood to recommend across markets as our content offering builds and marketing messages are honed, factors that help drive y/y growth in net additions,” wrote Netflix CEO Reed Hastings and CFO David Wells in the shareholder letter.
As for that “net neutrality” ruling that some of you have been worried about, Netflix doesn’t appear to be worried. In the same letter, Hastings and Wells write that they don’t see a broadband internet provider discriminating against bandwidth-hoggers like Netflix. “The most likely case,” the execs write, “is that ISPs will avoid this consumer-unfriendly path of discrimination. ISPs are generally aware of the broad public support for net neutrality and don’t want to galvanize government action.”
What’s more, Netflix reminds everyone that consumers buy higher internet-speed packages to avoid issues like slow video service. “ISPs appear to recognize this and many of them are working closely with us and other streaming video services to enable the ISPs subscribers to more consistently get the high-quality streaming video consumers desire.”
That said: “Were this draconian scenario to unfold with some ISP, we would vigorously protest and encourage our members to demand the open internet they are paying their ISP to deliver.”
As for Netflix’s original content business. The company highlighted the new shows and new seasons of existing original shows that will arrive on the service in 2014. Aside from that, Netflix mentioned that “Turbo F.A.S.T,” the animated series produced by DreamWorks Animation, is on track to be “one of the most popular kids series ever on Netflix.” The show, which is based on a DreamWorks feature film, is “especially strong” throughout Latin America. (Go figure, Latin Americans love racing snails.