Netflix traffic growth is “off the charts,” according to a Citi research report citing comScore data. Due mainly to the immense takeup of the company’s Watch Instantly streaming video service, the number of visitors to the Netflix website spiked 46 percent year-over-year in June, which is the fastest year-over-year growth Citi analyst Mark Mahaney says he has seen in more than five years. For the second quarter, Netflix’s web traffic was up 34 percent year-over-year, which is an acceleration over 19 percent growth year-over-year that the subscription rental firm saw in the first quarter.
The massive traffic growth comes as Netflix has seen its online streaming service take off, driving more users to begin watching its videos through their TVs, Blu-ray players, game consoles and other connected devices. Interest in Netflix streaming has also led a dramatic increase in subscribers over the last year; the subscription rental firm added 1.7 million new subscribers in the first quarter, ending the period with 14 million customers. That represents an increase of 35 percent over the 10.3 million subscribers it had a year earlier.
That growth will no doubt continue, especially as Netflix adds more exclusive content and more consumer electronics devices that subscribers can view the streaming service on. The company recently struck a deal for exclusive, first-run access to feature films from Hollywood production and co-financing firm Relativity Media. In addition, Netflix introduced an app for the Apple iPad at the tablet’s launch, and unveiled plans for an iPhone app coming soon. Altogether, Netflix expects to be on more than 100 consumer electronics devices by the end of the year.
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