Netflix Inc. (NASDAQ:NFLX) revenues are expected to surge over the next five years as the streaming video service sees the number of paid subscribers continue to grow across the globe.
The number of paid subscribers could reach 128 million by 2022, up 44% on the amount Netflix had at the end of 2016, according to a report from the Digital TV Research.
The report, published by Research and Markets, said subscription revenues are estimated to rise to US$14.9bn in 2022 from the $8.8bn reported last year.
Netflix has been growing in popularity as more consumers like to pick and choose what TV shows and movies they would like to watch at any given time. The group's share price has risen more than 24% in the year to date.
Netflix had 48 million US subscribers and 41 million international subscribers at the end of last year. Overseas subscribers are likely to exceed US subscribers by early next year, the report said.
North America and Europe currently represent about 81% of the company’s subscriber base but the report has estimated it could fall to 72% by 2022 as demand for the service rises elsewhere.
The number of paid subscribers in the Asia Pacific region is expected to reach 10mln by 2022, nearly triple the amount in 2016.
In April, the company said it added 4.95 million new subscribers in the first quarter, 3.53 million of whom were overseas. However, this fell short of expectations of 5.2 million users as it pushed back the release of its hit TV series, 'House of Cards', to the second quarter.
Revenue rose 35% to $2.64bnin the quarter.
Netflix forecast 3.2 million more in the seasonally slow second quarter, ahead of analysts' estimate of nearly 2.4 million.