The company will reach that milestone this weekend if its projections are correct. In the first quarter, its earnings per share were standing around 40 cents compared to analysts' expectations of 37 cents per share.
USA paid subscribers continued to grow at a slower pace than we previously projected, with trailing 12-month paid net adds at 3.7 million in the quarter, down 32% from 5.4 million at the end of first-quarter 2016, which was down 9% versus 2015.
An analyst from Wedbush Securities said that the boom of smartphones and tablet devices paved the way for people to watch and stream video anywhere, especially with the ability to download content for offline watching.
Second, with its growth in the saturating USA market steadily slowing down while its global growth continues apace after expanding its reach to 190 countries last year, Netflix is on course to have more customers outside its American home base than inside for the first time by the end of this year.
By the end of March, Netflix had almost 48 million subscribers outside the United States.
Now, the world's largest paid video service wants to be judged on its earnings rather than its growth.
The Los Gatos, California-based company said revenue rose 34.7 percent to $2.64 billion in the quarter. In today's time, its stock has increased from $US1.90 to $149.15.
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For all its success, Netflix still has a ways to go before it catches up with HBO, the popular pay-TV channel that has served as its role model. In the fourth quarter of 2015, research showed 49.1 million pay TV subscribers in the USA and that number is falling.
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Netflix's marketing budget has almost doubled over the past few years from $607,186 in 2014 to a forecast of more than $1 billion this year.
But I think things will likely improve this year with the roll out of the new seasons of House of Cards and Stranger Things, both blockbuster shows that represent the very best of their "Originals" brand.
Earlier this month Amazon announced that it would begin streaming football to Amazon Prime members, Netflix subscribers hoping for the same shouldn't hold their breath. The company also said that it plans to spend another $1 Billion this year over marketing. It lost some long-time US subscribers after their rates went up by as much as $2 per month a year ago.
The streaming firm had 98.75 million subscribers at the end of the first quarter.
The video streaming firm reported revenue that was in line with consensus for the first quarter but missed estimates and even its guidance on subscribers.
Using HBO as an example, Hastings said while over 10 years Netflix has grown to 50-million, HBO has also continued modest growth - meaning that the growth of one service doesn't necessarily mean the demise of the other.
The company blamed the 22% year-over-year decline in worldwide subscribers to an unusually large global growth last year. Operating margin is expected to slip from 9.7% in the first quarter to 4.4% in the second quarter, but the company reiterated its 7% target operating margin for the year.
"We have high satisfaction and are rapidly growing in Latin America, Europe and North America", the company said in its letter to shareholders.
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