Netflix Boosted by World Cup TV Sales in Latin America

The World Cup is fueling Netflix Inc. (NFLX)s global ambitions.

The dominant online-subscription service posted second-quarter customer gains that beat its own forecast, reaching more than 50 million subscribers worldwide, according to a statement yesterday. Soccer fans in Latin America snapped up Web-linked TVs for the World Cup and then signed up to stream shows like the hit series Orange Is the New Black.

Markets such as Brazil, one of the first targeted for growth by Los Gatos, California-based Netflix, are turning profitable and setting the stage for the companys next expansion -- in Germany, France and four other European countries starting in September. Chief Executive Officer Reed Hastings has made clear hes willing to sacrifice profitability to extend his lead in online television.

We hope its similar to our success in the past, where there are significant upfront losses that abate over the coming years, Hastings said yesterday in a telephone interview. Our long-term guidance is to run the company at breakeven as were engaging in this international expansion.

This quarter, Netflix forecasts profit of 89 cents a share, short of the $1.02 a share projected by analysts.

The Netflix hit series Orange Is the New Black. Close

The Netflix hit series Orange Is the New Black.

Close

The Netflix hit series Orange Is the New Black.

The outlook reflects foreign expansion costs, Hastings said in a letter to investors. Netflix sees a $42 million loss outside the U.S., almost triple the $15 million loss in the period just ended. The new European markets have more than 60 million households with fast Internet service, Hastings said.

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Netflix Boosted by World Cup TV Sales in Latin America